100 T 80 60 40 20 O $100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which Tis tax revenues and G is govemment expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion: (Show your calculations) a. What is the actual budget defiıcit? ( b. What is the cyclically adjusted budget deficit? ( c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy? ( For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). (s) 91

100 T 80 60 40 20 O $100 200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which Tis tax revenues and G is govemment expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion: (Show your calculations) a. What is the actual budget defiıcit? ( b. What is the cyclically adjusted budget deficit? ( c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy? ( For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). (s) 91

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1
Answer this for me mate. Much appreciated.
ww. STEADY AS SHE GOES Read A G what a BALANCED BUDGET THE ECONOMY Eipcs- Reprinted with permission from The Detroit News O A. Government revenues will stay the same. B. Government revenues will decrease. Spotify What does a balanced budget mean In terms of government revenue? Question 142 of 190 OC. Government revenue equals its spending. O D. Government receives less revenue than it spends. O E. Government generates more revenue than it spends. Chilled C
7 Derive multiplier for a change in the government purchase and the taxes. Why is the tax multiplier smaller than the government purchase multiplier?
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D Question 9 Price level (GOP deflator 2000-1000 LAAS X lower interest rates In the figure above, if the economy is at point A, the appropriate fiscal policy by the US Congress and the President would be to raise income taxes. raise interest rates SPAS lower income taxes Real GDP ons of 2000) Next ▸
2. If government expenditures are $100 and the average tax rate is 0.6, derive the equation for the budget line and draw the budget line. What is the real GDP when there is no deficit and no surplus?
5.
1. A college wants to produce an effigy for the student carnival. Preliminary studiesmade it possible to establish that the production of these effigies requires fixed costs of $2,008and variable costs (materials, labor, energy) of $0.90 per effigy. One of therequirements of the college being not to make a deficit, he had a market study carried out.It appears from this study that by selling these effigies for $3.75 we can hope to sell them1,000, whereas by setting the price at $2.50, the potential sales are 3,000.a) Express the demand in terms of the selling price and representgraphically this function.b) Express the cost of production as a function of the selling price.c) Express the income in terms of the selling price and determine the price that thecollege should fix to maximize the income from this sale of effigies.d) Represent the income function and the cost function on the same system of axesand determine the prices corresponding to the break-even thresholds and numbereffigies…
9. Why do Social Security and Medicare pose problems for the federal government budget? The number of workers who can pay for the retirees is increasing. O Payroll taxes are capped and cannot be raised. O The number of retirees is decreasing. The number of sick people is rising too quickly. O Life expectancy of retirees is increasing. 10. Why do Social Security and Medicare pose problems for the federal government budget? The number of people retiring is increasing. The number of workers who can pay for these retirees is increasing. Life expectancy is decreasing. The number of sick people is rising too quickly. Social insurance taxes cannot legally be raised any further.
aget TRUE - OR - FALSE The amount the government owes to the public is the deficit. O True O False
6. The amount by which federal tax revenues exceed federal government expenditures during a particular year is the A. public debt. OB. budget deficit. O C. Federal Reserve. D. budget surplus.