Consider an economy where the marginal propensity to save is 0.15; the marginal propensity to import is 0.05 and the marginal propensity to tax is 0.2. If there is an increase in government spending of $150 million, by how much would national income increase?    (a) National income would increase by $350 million (b) National income would increase by $375 million (c) National income would increase by $210 million (d) National income would increase by $240 million

1

The government of Osiris believes in balancing its budget over a seven-year cycle. Over the first six years, it has maintained its spending at $200 billion and its MTR at 0.25. (There are no autonomous taxes in Osiris). Column 2 of the table below shows the level of GDP in each of the first six years in the cycle. a. Complete the table below. Round your answers to nearest whole number. (4) (1) Year (2) GDP (3) Tax Revenue Government (5) Deficit/Surplus Spending ($billion) ($ billion) ($billion) 1 800 200 2 760 200 740 200 4 825 200 820 200 825 200 Suppose that the estimated level of GDP in Year 7 is projected to be $800. b. What level of government spending (assuming no change in the tax rate) for the government of Osiris to end the seven-year cycle with its budgetary goal on target? Government spending would have to be $ c. Alternatively, what should the new tax rate be (assuming no change in government spending) for the government of Ran to end the seven-year cycle with its budgetary…

My dear jiger hand written solution is not allowed.

Define government budget in not more than 3 lines

Economics

(a) Suppose the price level in an economy rises while the money wage rate remains constant. What happens to the quantity of real GDP supplied. How will this affect the aggregate supply or aggregate demand curve? What if the potential GDP increases? Which aggregate curve is affected and how? (b) Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50   2,000   1,900   100   150   -50   3,000   2,800   100   150   -50   4,000   3,700   100   150   -50   From the table data provided, answer the following questions. The numbers in the table are in billions of dollars. Show all calculations. a. What is the equilibrium level of real GDP? b.    What is the Marginal Propensity to Consume? c. What is the multiplier value in this economy? d.    If potential GDP is $4,000 billion, is the economy at full employment? If not, what is the condition of the economy? e.    If the economy is not at full employment, by how much should government spending…

(25) Which of the following is an example of fiscal policy? Select one: a. A change in tax rates. b. A change in the money supply. c. A change in interest rates. d. A change in the inflation rate.   (26) If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals ________. Select one: a. 25% b. 18% c. 32%

Do you agree or disagree with this statement: “It is in the best interest ofoureconomy forCongress and the President to run a balanced budget each year.” Explain your answer.

a tax decrease will decrease consumption   a tax increase will increase consumption   consumption and after-tax income are unrelated   consumption varies inversely with after-tax incomes   consumption varies directly with after-tax incomes