Consumption Function: C = 100+ 0.8Yd Investment Function: I = 100 Government Spending: G = 150 Net Taxes: T= Disposable Income: Equilibrium: The level of equilibrium income, Y, = $ 40 +0.25Y Yd=Y-T Y=C+I+G (Enter your response rounded to two decimal places.) (Enter your response The amount of taxes collected by the government at equilibrium, T, = $ rounded to two decimal places.) The budget deficit at equilibrium, (G-T), = $ and include a minus sign if necessary.) (Enter your response rounded to two decimal places

Consumption Function: C = 100+ 0.8Yd Investment Function: I = 100 Government Spending: G = 150 Net Taxes: T= Disposable Income: Equilibrium: The level of equilibrium income, Y, = $ 40 +0.25Y Yd=Y-T Y=C+I+G (Enter your response rounded to two decimal places.) (Enter your response The amount of taxes collected by the government at equilibrium, T, = $ rounded to two decimal places.) The budget deficit at equilibrium, (G-T), = $ and include a minus sign if necessary.) (Enter your response rounded to two decimal places

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 9SQ

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The imaginary country of Acordia lists the following projected revenues and outlays for 2020: $30 million in personal income tax, $20 million in corporate income tax, $7 million in indirect taxes, $2 million in investment income, $35 million in transfer payments, $14 million in government expenditures, and $4 million in debt interest. What is the projected budget surplus (or deficit) for 2021? Calculate the amount and indicate whether it is a surplus or deficit.
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