Which of the following is incorrect regarding tax revenues? a.they increase during recessions b.they increase during economic expansions c. they are a revenue source in the government's budget d. they change with changes in the tax rate

Q: The following data are for the economy of Moksha. C= 40 + 0.75Y G= 180 I=70 XN= 50 - 0.25Y a.…

A: Given  C = 40 + 0.75Y  G = 100  I = 70  Xn = 50 - 0.25Y  a. Calculate equilibrium GDP      Y =…

Q: By how much will GDP change

A: Government spending multiplier formula  ∆Y/∆G = 1/1-MPC ∆Y = 1/1-MPC × ∆G ∆Y = 1/1-0.80 × 10  ∆Y =…

Q: MULTIPLE CHOICE QUESTIONS1. Which of the following is a category of fiscal policy?A) government…

A: We are authorized to answer one question at a time since you have not mentioned which question you…

Q: 11. Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of the tax…

A: Taxes Change (Reduction)=-$50 billion Income Change(Increase)=$1000 billion Tax multiplier shows the…

Q: Why is a $100 billion increase in government spending on goods and services more expansionary than a…

A: According to the aggregate expenditure model Total income (Y) = Consumption (c +b(Y-Taxes) +…

Q: What are the budget revenues for a government to finance government spending?

A: Budget revenues are detailed information of revenues  receipts and expenditures of the government.…

Q: (1) Tax system contributes to reduce inequality and control consumption-Explain in your own words.

A: Government levies taxes on consumers to generate resources to provide public goods like defence,…

Q: (Use for a and b)Suppose the interest on the debt was $700 billion. If interest is paid…

A: a. The total debt of the country is given as $700 billion and 90 percent spend for interest. The…

Q: The following transactions took place in Ecoland in 2019: Trillions of 2015 dollars Government…

A: As per the policy , I can solve the first three subparts for you. Part a) GDP in 2015 = C + I + G +…

Q: Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive.…

A: The tax is a unilateral payment made by the people towards the government for various purposes such…

Q: What is the importance of studying the national budget and how it will affect our economy?

A: national budget is important because of following reasons :- 1. Hepls in allocation and distribution…

Q: What are some importance of tax cuts

A: Tax reduces the disposable income of individuals.

Q: The nominal GDP in the country of Adra is currently $650 million. Production in Adra is unaffected…

A:

Q: Increase in tax by the government: a. None of these b. Decreases the consumption by individuals c.…

A: When government increases taxes, the disposable income of the people tends to reduce. In other…

Q: DEFINE FISCAL POLICY. WOULD THE INCREASE OF $100 IN GOVERNMENT SPENDING HAVE THE SAME EFFECT ON GDP…

A: Fiscal policy is known as stabilizing policy in which government changes government spending or…

Q: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an…

A: Fiscal policy is a policy that is used by the government of a country in order to influence a…

Q: 1. This kind of tax is derived from the individuals, corporate estates, and trusts income. A.…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: This question is complete. The graph provides all the information. Use the graph to the right to…

A: Option B is wrong.

Q: of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real…

A:

Q: 10. From the following data about a government budget, find out the following: (1) Revenue deficit…

A: The preparation for the statement of receipts and expenditures of the government annually over the…

Q: Illustrate each of the following situations with a graph showing IS curve: a. An increase in…

A: The IS curve slopes downward from left to right because as the interest rates falls, investment…

Q: Government is considering a policy change to stimulate the economy by encouraging private…

A: Government is considering a policy change to stimulate the economy by encouraging private…

Q: 2. (Similar to Chapter 12, 38A) The nominal GDP in the country of Adra is currently $650 million.…

A: The gross domestic product (GDP) refers to the market value of all the final commodities (goods and…

Q: Suppose the economy has unemployment level close to 15%. A proper fiscal policy might be which of…

A: Unemployment occurs when people who are able, willing and looking for jobs are unable to find jobs.…

Q: Explain the items of Government Expenditures in details

A: The aggregate expenditures refer to the total expenditures made by all the entities in an economy.…

Q: What role taxes policy plays in determining the GDP or national income in an economy? Explain with…

A: Taxes play a crucial role in determining GDP or national income. It helps the government finance…

Q: What are the effects of the business cycle on the government's budget? automatically tax revenues…

A: The government spending plan, also known as the national budget, is a file that lists the various…

Q: Choose the two methods with which the government can balance the federal budget. These two methods…

A: Budget refers to a legal document which is created either by the government or some other political…

Q: STEADY AS SHE GOES AFFIL BALANCED BUDGET THE ECONOMY Reprinted with permission from The Detroit News…

A: Government’s budget depends on revenue and spending.

Q: Q2: g) Explain the prosperity and recession phase of business cycles. h) There are two fiscal…

A: Prosperity and recession are some of the phases in the business cycle.   The prosperity phase occurs…

Q: Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b)   How much do households…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What should government do with its spending and taxes during a recession? Why?

A: During a recession, taxes should be reduced and spending should be increased in order to trigger…

Q: Choose... Choose.. Decrease in government expenditure Increase government expenditure Decrease in…

A: Fiscal policy involves the use of tax and government spending to influence the economy. Autonomous…

Q: Economic situation: The economy is suffering from an unemployment problem created by too little…

A: A fiscal policy of expansionary nature works when the nation is going through a low, and it will…

Q: Why $100 spent by government brings a larger increase in the equilibrium level of income than $100…

A: The value of government purchase multiplier is: The tax multiplier is:

Q: The information in many of the tables in this chapter can be found in the Economic Report of the…

A: 1.1. Government revenue has increased over a period of time. This growth is mainly because of the…

Q: What is fiscal policy

A: In Keynesian economics, the changes in aggregate demand in the economy are able to affect the output…

Q: In an economy, the budgetary deficit is of $30,000 The total receipts are $14,000 Calculate the…

A: According to the above given question, the value given are:- Budgetary deficit = $30,000 Total…

Q: Do tax cuts increase economic growth and taxable income so much that tax revenue increases?

A: Tax cuts are the fall in the amount of money of the taxpayers which are added to the revenue of the…

Q: Which of the following is not a means of financing government spending? Government subsidies…

A: The government mainly finance its spending on the economy with the help of tax revenues it earns.…

Q: Do all these taxes and licenses reduce our disposable income?     Why do we sacrifice and pay…

A: Disposable Income: The amount of money that an individual spends on consumption and savings after…