Answered: 47) If government spending is increased…

47) If government spending is increased by $550 and taxes are increased by $550, the equilibrium level of income will 47)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 2SCQ: When governments run budget surpluses, what is done with the extra funds?

See similar textbooks

Related questions

Q: After the excise tax is imposed, what is the new equilibrium quantity of sofas? d. What is the…

A: Equilibrium quantity may be defined as the quantity in the economy where the demand of the commodity…

Q: What are the two sides to the federal budget? (Select two): A. Government Spending B. Equilibrium…

A: The phrase "government expenditure" refers to both the things the government buys and the many…

Q: Suppose that the typical Canadian spends 80 percent of their income. There is an income tax rate is…

A: The tax multiplier helps to measure how the change in taxes will alter GDP. The consumer spending…

Q: 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by…

Q: Assume for the following scenario that there is a 10% sales tax on gasoline. Determine the amount of…

A: The sales tax of 10% is implemented. The taxable income income and gasoline expenditure for each…

Q: What would it take to convert a sales tax into a true consumption tax? Senator Smith has suggested…

A: A tax on products and services that are consumed or used by people or households is known as a…

Q: 23)Which of the following is classified as Fiscal Policy? Select one: a. The federal government…

A: 23.Answer is (a) Tax cut is an example of fiscal policy.To decrease air pollution,federal government…

Q: If taxes (T) increase, total expenditures decrease. In what direction does the demand curve shift?…

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: What are the effects of an increase in government purchases? (Select all that apply.) A. Decrease in…

A: Government spending alludes to the total expenditure caused by the government on different goods and…

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: 4) Why should the federal government not be required to balance its budget while state and local…

A: A budget is a financial plan for an economy. the budget is the plan which is made or drawn for a…

Q: 3) Are excise taxes, like those on tobacco, gasoline, and alcohol, Progressive, Proportional, or…

A: Regressive tax imposes more burdens on poor households than the rich ones because it is same…

Q: C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550Q.2.5 Calculate what the new…

A: The tax Rate is zero while all other factors remain constant. First, the autonomous expenditure (AE)…

Q: Derive and Explain the significance of Tax Multiplier and Government Expenditure Multiplier. Why do…

A: The proportional amount of rising or reduction in the final revenue arising from the investment…

Q: Complete the following table and answer one question. a. Assuming an 8 percent sales tax is levied…

A: The tax is a compulsory or mandatory levy paid by an individual. It may be either collected direct…

Q: The following is information for the economy of Tandor, where taxes are wholly autonomous: C = 50+…

A: The level of income in an economy where the total spending (aggregate expenditure) is equal to the…

Q: 1. Why is a $100 billion increase in government spending on goods and services more expansionary…

A: In an economy, a 1% change in government spending will have different impact on the real GDP as…

Q: Which of the following is incorrect regarding tax revenues? a.they increase during recessions…

A: The correct solution is option a.

Q: Which of the following economic policies is more Expansionary: An increase in both government…

A: Monetary policy alludes to the moves that governments make in the financial field. These by and…

Q: Make a graph showing the spending and tax revenue of your state government for as many years as you…

A: Answer is given below

Q: n increase in federal income tax rates is an example of fiscal policy that affects GDP indirectly…

A: Aggregate demand is the combination of consumption, government expenditure, investment, export and…

Q: mployment GDP is $9000 billion, and the MPC = 75, what is the appropriate fiscal policy to return ne…

A: An economy is said to be at its equilibrium level of income when aggregate supply and aggregate…

Q: 10) Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic…

A: Demand is the total quantity of goods and services for which the consumers are willing to pay…

Q: of 30000$ The income tax in the country X is proportional and equals 2% The income tax in the…

A: The proportional income tax rate remains same for different incomes. The progressive income tax rate…

Question

47) If government spending is increased by $550 and taxes are increased by
$550, the equilibrium level of income will
47)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

3) Are excise taxes, like those on tobacco, gasoline, and alcohol, Progressive, Proportional, or Regressive? Why do you think they are?
6 an increase in federal income tax rates is an example of fiscal policy that affects GDP indirectly True or False?
4) Why should the federal government not be required to balance its budget while state and local governments are?
9. Make a graph showing the spending and tax revenue of your state government for as many years as you can find (use the government of your home country if you are not from the United States). What trends do you notice? What spending categories make up the largest share of the state budget? What are the largest sources of revenue? e
ARTICLE: LUSAKA, Sept 27 (Reuters) - Zambia will not replace its value-added tax (VAT) with a non-refundable sales tax, Finance Minister Bwalya Ng'andu said on Friday, after the proposal met substantial opposition from businesses. "Government has decided to maintain the Value Added Tax, but address the compliance and administrative challenges," Ng'andu said in a budget speech. Zambia's mining industry fiercely opposes the tax - just one sore point between the government and the economy's most important sector. Based on your review of the article above, do you think that Zambia should replace the VAT tax with a national sales tax? Discuss the difficulties inherent in collecting the VAT tax compared to the simplicity of a sales tax. What are the pros and cons of each system?
23)Which of the following is classified as Fiscal Policy? Select one: a. The federal government passes tax cuts to encourage firms to reduce air pollution. b. College students are allowed to deduct tuition costs from their federal income taxes to encourage them to finish their college education. c. The state of Nevada builds a new tollway in an attempt to expand employment in their state d. President Obama enacted the “cash for clunkers” program in the 2008 Recession to increase spending in the economy
11
When governments run budget surpluses, what is done with the extra funds?
After the excise tax is imposed, what is the new equilibrium quantity of sofas? d. What is the total amount of revenue collected by the government from the excise tax on sofas?
6. Which of the following is not a fiscal instrument: * O Budget O Public expenditure Taxation All are fiscal instruments TOSHIBA
Use the following equations for exercises 16–18. C= $100+.8Y I= $200 G= $250 X = $100.2Y
#7