Suppose that government is included in the short-run model of national income, where the level of government expenditure is $100 billion and the net tax rate is 50%. Use the line drawing tool to draw and properly label the budget balance function on the graph at right. Make sure that the line extends from Actual National Income level 0 to 1000. Carefully follow the instructions above, and only draw the required objects. Budget Balance ($ billions) The Budget Balance Function 480- 440- 400- 360- 320- 280- 240- 200- 160- 120 80 40- 어 -40- 200 400 -600 800 1000 -80- -120- -160- -200- Actual National Income ($ billions)
Suppose that government is included in the short-run model of national income, where the level of government expenditure is $100 billion and the net tax rate is 50%. Use the line drawing tool to draw and properly label the budget balance function on the graph at right. Make sure that the line extends from Actual National Income level 0 to 1000. Carefully follow the instructions above, and only draw the required objects. Budget Balance ($ billions) The Budget Balance Function 480- 440- 400- 360- 320- 280- 240- 200- 160- 120 80 40- 어 -40- 200 400 -600 800 1000 -80- -120- -160- -200- Actual National Income ($ billions)
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
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Transcribed Image Text:Suppose that government is included in the short-run model of national income, where the level of government expenditure is $100 billion
and the net tax rate is 50%.
Use the line drawing tool to draw and properly label the budget balance function on the graph at right. Make sure that the line extends from
Actual National Income level 0 to 1000.
Carefully follow the instructions above, and only draw the required objects.
Budget Balance ($ billions)
The Budget Balance Function
480-
440-
400-
360-
320-
280-
240-
200-
160-
120
80
40-
어
-40-
200
400
-600
800
1000
-80-
-120-
-160-
-200-
Actual National Income ($ billions)
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