1. The difference between what a government spends and what it collects in taxes in a year is   Group of answer choices the government budget deficit or surplus. the government debt. net revenue. net taxes.       2. The aggregate consumption function is C = 100 + 0.6Yd. If income is $1,000 and net taxes are $300, consumption equals   Group of answer choices 800. 580. 700. 520.

Q: suppose the government wishes to illuminate recessionary of a gdp of 100 billion in the MPC is .075.…

A: To calculate increase in government spending we have to first calculate the spending multiplier.

Q: In an economy, the fiscal deficit is $31,000 , total expenditure is $88,000, and revenue receipts is…

A: The data presented in the question is:- Fiscal deficit = $31,000  Total expenditure = $88,000…

Q: 9 T.G (S) 100 ВО 60 40 20 G T 0 $100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, where…

A: The tax revenue for the government is represented by the line T and the government expenditure is…

Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.

A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…

Q: Suppose the government enacts a stimulus program composed of $400 billion of new government spending…

A: It is given that the government increases government spending by $400 billion and it is also given…

Q: government starts off with a total debt of $4.0 billion. In year one, the government runs a deficit…

A: Government debt at the end of year 3 would be given as the sum of all three years of deficit or…

Q: Which of the following will not undermine the effectiveness of fiscal policy, and prevent it from…

A: Fiscal policy refers to the use of government spending, taxation, and borrowing to influence the…

Q: Suppose the tax multiplier in an economy is -3. How will total spending (TS) change when taxes (T)…

A: Since tax multiplier is -3, it means that if T decreases by $1, TS increases by $3. So, When T…

Q: 4. Which factor is NOT a tool of fiscal policy? (Select All that Apply) A. changing the tax rates B.…

A: As there are multiple separate questions answer is provided to the first question i.e. question 4.…

Q: Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending…

A: NASA is maintained and managed by the U.S government and the universities are maintained by the…

Q: Government spending in Robok is $150 billion, and its only tax is an income tax with a marginal tax…

A: Government spending= $150 billion Marginal tax rate= 0.3 Government budget= $440

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: A political candidate has written an op-ed piece in which she claims that the U.S. government debt…

A: Given,  The U.S government debt has continually grown and is out of control. The government cannot…

Q: Consider an economy with the initial equilibrium income level of $1000 and the consumption function…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Expansionary fiscal policy occurs when the government increases __________, decreases __________, or…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: At the beginning of 2009, a government had a total debt of $540 billion dollars. It ended 2009 with…

A: A budget surplus happens when pay surpasses uses. The term frequently alludes to an administration's…

Q: The following data are for the economy of Moksha. G=180 XN-50 0.25Y C=40+0.75Y I=70 a. Calculate…

A: Marginal propensity to consume is portion of additional income that household spends.Spending…

Q: 15. Suppose the MPC is .90 and the MPI is .10. If govern- ment expenditures go up $100 billion while…

A: ***Since the student has asked for a specific question to be solved, the expert is required to solve…

Q: If MPC =2/3, actual GDP = $14,000 and potential GDP = $13,100, there is a __________ (recessionary /…

A: The measure that depicts the final value of goods and services being produced in an economy during…

Q: Suppose that real GDP is currently $19.3 trillion, potential GDP is $23.0 trillion, the government…

A: The real GDP is $19.3 trillion. The potential GDP is $23 trillion.The government purchases…

Q: Government Purchases  Government Taxes  Real GDP 1 340 268 5,926 2 419 226 5,792 Suppose there is no…

A: Public debt, also known as government debt or national debt, refers to the total amount of money…