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a What is the total value of government spending?
b What is the value of total consumer spending?
c What is the country's total
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- Fiscal experts in the United States are most concerned about the country's: Select one: a. risk of debt default. b. high ratio of debt to GDP. c. implicit liabilities. d. low ratio of debt to GDP.Economics: Public Economics Question: 1 Over long periods of time, the present discounted value of tax revenue must be greater than or equal to the present discounted value of government expenditures. This statement illustrates the concept of a. income equality b. capital markets c. intergenerational equity d. intertemporal budget constraints Question: 2 Why do some budget modelers criticize the use of static scoring?a. The impact of government policy on the economy is not perfectly understood. b. It is unreasonable to assume that government policy does not affect the size of the economy. c. most policy does not result in individuals changing behavior.d. government policy only changes distribution of resources, not their availability. Question: 3 If the economy is in recession, the government budget deficit is ___ the cyclically- adjusted deficit. a. the same asb. unrelated toc. smaller than (in absolute value) d. greater than (in absolute value) Question: 4 According to…Question 6 Among all the for-hire transportation modes, which one contributes the least to GDP? O Truck Air Warehousing and storage Water O Rail
- 18. If consumers in the U.S. buy $3.5 billion of clothes made by businesses in Bangladesh, how is this accounted for in the expenditure categories? a. this is spending on a consumer good so GDP rises b. the clothes are imports so they reduce GDP c. the clothes are both consumer goods and imports so GDP doesn't change d. the GDP could rise or fall, it depends on whether the clothes were taxed4. Explain how information problems concerning the quality of consumer goods can lead to bad market outturns. Explain possible policies that the government could introduce to improve the situation.2 96 nts Turning Point (A) (B) (C) (D) (E) 1 The data in the accompanying table give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time. Date Jan 1980 July 1980 July 1981 November 1982 July 1990 The economy experienced an expansion that lasted from Multiple Choice Seved Help Real GDP (2012 $ billions) 6,837.6 6,688.8 6,978.1 6,794.9 9,398.5 Save & Exit Submit
- 3. Categories of expenditures Dmitri and Frances Doherty live in Conshohocken, PA. Their son, Jake, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (1), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Dmitri's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway: 23, which feeds into the center of Conshohocken, Frances gets a new video camera made in the United States. Dmitri buys a sweater made in Guatemala. Jake buys a new set of tools to use in his plumbing business. с 00 I O O G O X 0 M O O 0 000 00 000 0004. Questions and Problems 4 In 2017, the top 10% of income earners earned 18.7% 33.9% 47.74% 67.8% 88.5% of total income and paid of federal income taxes.The government runs a budget surplus when ? A.tax revenue falls below its spending. B.the budget is balanced. C.tax revenue exceeds its spending. D. investment exceeds its spending.
- 3. Categories of expenditures Shen and Valerie Ferrari live in Swarthmore, PA. Valerie's father, Antonio, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Shen's employer upgrades all of its computer systems using U.S.-made parts. Valerie gets a new video camera made in the United States. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Valerie's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Shen buys a bottle of Italian wine. OOOoo 0 I 00000 G 00 000 X 00000 M OC 0 0 0 05) The value of government spending in billions of dollars is A) 200. B) 600. C) 800. D) 1,000a. The following plot shows the 12-month percentage growth rates in real personal consumption expenditures (blue line) and in real government expenditures (red line). Do you see any evidence that the latter crowds out the former? Why or why not? 20 15 10 5 -10 -15 15 10 5 0 -5 -10 The following plot shows the 12-month percentage growth rates in real GDP (blue line) and in real government expenditures (red line). What, if any, relationship does there appear to be between these two time series? Briefly explain. Rate of Growth of C (blue) and G (red) 2003 3005 2007 2003 2013 2015 2017 2019 Rate of Growth of Y (blue) and G (red) 2011 2009 2007 2005 2013 2015 2021 2017 2023 2019 2021 2023