Derive the expenditure multiplier using the lump sum taxes (or fixed sum)

Q: Y= C+I+G Where C = 160 +0.6Yp I = 150 G = 150 T= 100

A: When the policymakers compute the real GDP by expenditure methods, they include consumption,…

Q: Explain the relationship between MPL and MC

A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…

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: The economy is described by the following functions: Shown in Picture where ?t is the tax rate.…

A: Multiplier associated with government purchases is the total change in income with change in…

Q: If the MPC is 0.5, the tax multiplier is Select one: a. -1 b. -2.5 C. -1.67 d. -2

A: Tax Multiplier:- The tax multiplier is a metric that evaluate how much a tax reform affects…

Q: 000 00-50,000 00-80.000 0.9 0.8 0.75

A: Spending multiplier = 1 / 1-MPC Tax multiplier = Spending multiplier – 1

Q: What is the value of multiplier, if the MPC is 0.7 a) 4 b) 7.5 c) 5 d) 0.75 e) 0.04

A: A multiplier in economics is a term used to describe an economic element that, when altered or…

Q: If MPC Is 0.5 so what is MPS ( define as well)

A: A person's disposable income is divided into two parts: consumption and saving. Savings are also…

Q: Explain any two important feature of revenue expenditure!

A: Basically in the given question Revenue expenditure is usually denoted as the in general the…

Q: If the MPC is​ .75, the government spending multiplier is

A: The government spending multiplier is the amount by which a change in government spending affects…

Q: Definition of expenditure control measure

A: Expenditure can be defined as the payments made for the purchase of any goods or services where…

Q: Compare the impact of a recession that reduces consumer income by 10 percent on the  consumption of…

A: A recession means a sustained period of weak growth in real GDP (output) that is accompanied by a…

Q: As you can see from the graph below, since the CHIPS Act was passed, construction spending in the…

A: The expenditure multiplier is a concept in economics that measures the change in total economic…

Q: In the economy of Akron, the tax and savings functions are as follows: T=220+0.2Y S=-140+0.3Y a)…

A: The consumption function is an economic concept that shows the relationship between consumer…

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: DERIVE the balance budget multiplier

A: When the change in government expenditure is equal to the change in taxes, then the budget is said…

Q: Consumer saves 15% of additional income, spends 65% of income on goods and services and spends 20%…

A: The tax multiplier can be calculated by using the following formula.

Q: Why will a temporary tax increase be insignificant in reducing consumption expenditures by the…

A: Taxes are obligatory commitments that a government office, whether nearby, provincial, or…

Q: What is the effect on MPE, if there is an increase in a) MPC b) MPS c) MPM ) MTR

A: MPE stands for marginal propensity to expend. MPS stands for marginal propensity to save MPC stands…

Q: Define the tax multiplier and give the algebraic expression.

A: A payment that is compulsory and is levied by the Government to fund the expenditures of the state…

Q: What is the effect on savings of a tax cut of $15 billion? Is this inflationary or deflationary?…

A: The marginal propensity to consume (MPC) measures the change in the consumption spending of…

Q: Calculate the government spending multiplier and the tax multiplier if the MPC is 0.6. Show your…

A: The government spending multiplier is calculated as follows.

Q: What is the difference between indirect taxes and net indirect taxes? Macro economics

A: Taxation: - Taxation is the imposition of some charges by the government of a country on the…

Q: Prove that the multiplier is equal to 1/(1-mpc)

A: We know Y = C + I and C = a + bY where  Y is income C is consumption  I is investment  a is…

Q: If the MPC is 0.9 find the value of MPS using the formula

A:

Q: Which of the following has the largest multiplier asssociated with it? A) MPC = 0.6 B) MPC = 0.8…

A: The gross domestic product multiplier is the value that is multiplied with the autonomous level of…

Q: At Charlic's bakery, the MPL, is -12. Does this mean her average product must also be negative?…

A: MPL A marginal product of labor refers to a change in the level of output due to hiring an…

Q: The MPC is 0.41  If change in consumption is $650 find the change in income

A: The information being given is:- Marginal propensity to consume = 0.41 Change in consumption = $650…

Q: a tax decrease will decrease consumption   a tax increase will increase consumption   consumption…

A: A direct relationship implies that an increase in variable A leads to an increase in variable B…

Q: If the MPC is 0.75, the tax multiplier is

A: Tax multiplier means magnitude of change in income when there is change in tax. This means when tax…

Q: What is the spending multiplier for the north laurisian econom

A: According to research from 2020,Louisiana , the industry contributed $73 billion to the state's GDP…

Q: he MPS is 0.1 and the income tax rate is 0.33 the multiplier is approximately

A: Given, Marginal Propensity to Save [MPS] = 0.1 Income tax rate = 0.33 The Marginal Propensity to…