(ii) Suppose Country B is similar to Country A in the amount of government expenditures and the level of real GDP at full employment.But instead of a proportional tax system, Country B has a lump-sum (regressive) tax system that balances the budget at all levels ofGDP.Graph the tax revenues for this country.Instructions: Use the tool provided 'Tax revenues' to illustrate the country's tax revenues. Plot the first point of the line where real GDPis $20 billion and the second point where real GDP is $80 billion. Plot only the endpoints of the line.$25Tools$20Tax revenues$15$10G$5$20$40$60$80$100Real domestic output, GDP (billions)Government expenditures, G, and tax revenues, T (billions)

There two points to note about the tax revenue of country B : 1 .) Tax revenue balances the budget…

Answered: (ii) Suppose Country B is similar to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. Dependent & independent variables; positive & inverse relationships: Ypsilanti Market Research conducted a survey to find out whether people who earn more money purchase more expensive goods. The following table indicates the relationship between income the survey subjects earned and the price of the car that they purchased. Price Income (Thousands of dollars per car) (Thousands of dollars per year) 0. 10 20 15 40 20 60 25 80 30 100 In the diagram below, draw the graph corresponding to the above table.
60 + Import favorites How can you find the main idea of this graph? O O O A) Look at the labels on the graph. B) Read the title of the graph. C) Consider the format of the graph. D) Read the data in the graph. Federal Spending in Fiscal Year 2020 Social Security $1.1 Trillion Medicare $769 Billion Medicaid $458 Billion $345 Billion Defense $714 Billion Outlays $6.6 Trillion PPP $526 Billion Unemployment Recovery Compens S473 Billion S Nondefense 5914 on Other $968 Billion
You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. New businesses Business failures State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) Click here for the Excel Data File Leading economic indicator 2000 1,088 Economic activity has 627 191.7 increased decreased 242,119 41.6 c. Interpret the indexes. (Round your answer to 2 decimal places.) 2018 1,162 The weights you assign are: new businesses 15%, business failures 10%, income tax 40%, enrollment 10% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to…
Using the data in the table below, calculate Aggregate Expenditure (AE), Savings (S), and increasing inventories Change (UI). Please ensure you show and input the negative sign where necessary for your answers on savings and undesired inventory changes. Aggregate Expenditure (AE) Number Number Number Income (Y) 550 640 730 Consumption (C) 577.5 636 694.5 Investment (1) 135 135 135 Savings (S) Number Number Number Inventory Disequilibrium Number Number Number
(A) Describe the direction and the form of the relationship aside from the outliers it is moderatley strong. (B) Explain why the direction and form of this relationship make sense.
You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. New businesses Business failures State income tax receipts ($ millions) College student enrollment State sales tax ($ millions) Click here for the Excel Data File Leading economic indicator The weights you assign are: new businesses 17%, business failures 10%, income tax 34%, enrollment 14% and sales tax 25%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) 2000 1,125 592 196.2 242,159 46.1 Economic activity has 2018 1,059 286 178.8 291,079 66.7 c. Interpret the indexes. (Round your answer…
What percentage of the U.S. gross domestic product (GDP) consists of consumer or household purchases (consumption)? Group of answer choices 55% 25% 35% 75% 80%
In an economy where people spend 80% of their incomes, the government lowers taxes by $5000. Calculate the change in real GDP that results. (Be extra careful to follow numeric instructions; round intermediate steps to four decimal places and your final answer to two. Use a positive number to denote an increase and a negative number (with negative sign) to denote a decrease.)
Using the information below, answer questions 1-3 Consider an economy that produces only three types of fruit: apples, oranges and bananas. In 2000, the production and price data were as follows: Quantity Price Fruit Apples 3000 Bananas 6000 Oranges 8000 $2 per unit $3 per unit $4 per unit In 2001 the production and price data are as follows Fruit Apples 4000 Bananas 14000 Oranges 8000 Quantity Price $3 per unit $2 per unit $5 per unit Nominal GDP equals O Show Transcribed Text Using 2001 as the base year, real GDP is $80,000 in 2000 and $56,000 in 2001 $61,000 in 2000 and $80,000 in 2001 $61,000 in 2000 and $82,000 in 2001 $56,000 in 2000 and $82,000 in 2001
Refer to the figure below: Insurance and pensions 11.9% Item a. Entertainment b. Transportation c. Clothing Housing 32.8% Item Weight 0.053 0.159 0.03 Entertainment 5.3% Transportation 15.9% Price Change 20% -8% 100% Health care 8.1% Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey (2018 data). Use the item weights in the figure to determine the percentage change in the CPI that would result from a(n) a. 20 percent increase in entertainment prices. b. 8 percent decrease in transportation costs. c. doubling of clothing prices. (Note: Review the table titled "Computing Changes in the CPI" in your text for assistance.) Instructions: Enter your responses as a percentage rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Food 12.9% Impact on CPI (Inflation Effect) Clothing 3.0% Miscellaneous 10.1%
Y = C + /+ G Y = 5,000 (: G = 1,000 T = 1,000 (· C = 350+0.75(Y – T) (: | | = 1,000-50r Question Find total consumption expenditure and disposable income of household.
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