Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule. GOVERNMENT SPENDING AND TAXES (Billions of dollars) 80 78 76 74 - 72 70 8328% 68 66 64 + 60 + 62 4 400 420 440 of 460 480 500 520 540 REAL GDP (Billions of dollars) 560 580 600 O G 0 T Deficits Surpluses ? Consider the government spending and tax revenues schedules you plotted. When real GDP is $420 billion, the government runs a budget Use the purple triangle (diamond symbols) to shade the region between the tax revenues schedule and the government spending schedule in which the levels of real GDP are associated with government budget deficits. Then use the green triangle (triangle symbols) to shade the region between the two schedules in which the levels of real GDP are associated with budget surpluses.

Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule. GOVERNMENT SPENDING AND TAXES (Billions of dollars) 80 78 76 74 - 72 70 8328% 68 66 64 + 60 + 62 4 400 420 440 of 460 480 500 520 540 REAL GDP (Billions of dollars) 560 580 600 O G 0 T Deficits Surpluses ? Consider the government spending and tax revenues schedules you plotted. When real GDP is $420 billion, the government runs a budget Use the purple triangle (diamond symbols) to shade the region between the tax revenues schedule and the government spending schedule in which the levels of real GDP are associated with government budget deficits. Then use the green triangle (triangle symbols) to shade the region between the two schedules in which the levels of real GDP are associated with budget surpluses.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows government spending and tax revenue for a hypothetical economy over a five-year period. All figures are in billions. Year Government Spending Tax Revenues 1 $ 800 $825 2 850 850 3 900 875 4 950 900 5 1000 925 i) In what years were there budget deficits and what were the amounts? ii) In what years were there budget surpluses and what were the amounts?
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What does an increase in the income tax rate illustrate? An increase in the income tax rate is an example of _______. A. increasing the government deficit B. discretionary fiscal policy C. automatic fiscal policy D. increasing the government debt
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ses Aside from the few years during Clinton's administration, what is the state of the national debt? Select one: O a. the debt is growing O b. the debt has been reduced considerably during the Bush and Obama administrations. O c. the debt is steadily shrinking O d. the debt is mostly staying the same Which president tried to limit
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3. Budget balances and the national debt The following table lists federal expenditures, revenues, and GDP for the U.S. economy during several years. All numbers are in billions of dollars. Revenues Year (Billions of dollars) 1929 3.9 1948 1967 1986 2005 FEDERAL EXPENDITURES AND RE VENUES (Percent of GDP) 25 20 15 10 41.6 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the orange points (square symbol) for expenditures and the green points (triangle symbol) for revenues. Line segments will automatically connect the points. 1929 148.8 769.2 2,153.9 Expenditures GDP (Billions of dollars) (Billions of dollars) 3.1 103.6 1948 29.8 157.5 990.4 2,472.2 1987 YEAR 1986 269.2 2005 832.6 4,462.8 12,421.9 Expenditures Δ Revenues ?
2. If government expenditures are $100 and the average tax rate is 0.6, derive the equation for the budget line and draw the budget line. What is the real GDP when there is no deficit and no surplus?