68-Budget Surplus/Deficit (millions of dollars)1 2 3++3¿NAB0125250375500 625 750875BoB₁Real GDP (millions of dollars)Oa Consider the following data about government debt and deficit in a given year:― real interest rate on government bonds = 2%- growth rate of real GDP = 2%- current debt-to-GDP ratio = 28%- primary budget deficit as a percentage of GDP = 6%Over this one-year period the debt-to-GDP ratio will haveA. fallen by 6 percentage points.B. risen by 0.6 percentage points.C. remained unchanged.D. risen by 6 percentage points.E. fallen by 0.6 percentage points.

We can use the following formula to calculate the change in the debt-to-GDP ratio:Change in…

Answered: 6 8- Budget Surplus/Deficit (millions…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Jse the following information to answer the next 5 questions. Year 2008 2018 Nominal Debt 150 500 Nominal GDP 1,000 2,500 Price Level/GDP Deflator 150 200 Assuming that the interest rate on the debt is 5%, what is the annual interest payment on the debt in 2018? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 15 b -5 C 10 d 25
Incorrect Question 9 The ability of forests to reduce soil erosion is an example of what type of economic value? Ecosystem service value Intrinsic value O Nonuse value Contingent value Revealed value
Question 4Select the information you need from the following figures and calculate the nationalincome for the year shown:Government Spending R18 000Depreciation R6 000Investment spending R35 000Net foreign spending R12 000Indirect taxes R14 500Net factor payments (R4 000)Consumer spending R30 000Subsidies R4 000
2. Mang Oleh Kembang in Lembang has 10 major fields that are used to grow Mango. The productivity of each field is expressed as follows: Annual Yield, Hundreds of Kilograms Field 1 2000 Field 2 1800 Field 3 1750 Field 4 1625 Field 5 1500 Field 6 1450 Field 7 1375 Field 8 1225 Field 9 8500 Field 7250 10 Assume that each field is the same size and that the variable costs of farming are $74,600 per year per field. The variable costs cover labour and machinery time, which is rented. Tamima farm must decide each year how many fields to plant. a. In 2017, corn farmers received $5.15 per 100 KG. How many fields did Tamima plant? Explain. b. By 2020, the price of corn had fallen to $4.23 per 100 KG. How will this price decrease change Tamima's decision? How will it affect his demand for labour?
8. Please use the formula to solve the problem
A4 Consider a linear income tax system in which one’s tax owed to government, T, depends on one’s income, I, according to the formula T = a + tI, where 0 < t < 1, and a is a constant. (a) What is the marginal tax rate (MTR)? Does the MTR change with income? (b) What is the average tax rate (ATR) when the income level is I? (c) If the income tax is progressive, then what can you say about the value of a?
5 Estimated U.S. taxpayer subsidies in green energy technology through 2013 are about $125 billion. Under what circumstances does the federal government need to undertake these subsidies as opposed to letting private companies themselves pay for such investments?
Calculate the value of output in the given image
1111 b. 4 5 1 4. 5 $3,000 - $5,000 4G Find G?
1. Individual Problems 1-11 The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that he will buy the company after five years. For the first $150,000 of profit, the vice president's compensation is a flat annual salary of $50,000 plus 50% of company profits. Beyond the first $150,000 in profits, the vice president's compensation is the salary he receives at $150,000 profit plus 20% of company profits in excess of $150,000. On the following graph, use the purple points (diamond symbols) to plot the vice president's salary as a function of annual profit, for the profits levels of $0, $50,000, $100,000, $150,000, $200,000, $250,000, and $300,000. MANAGER SALARY (Thousands of dollars) 250 725 200 175 110 125 100 Total VP Salary
If the total budget expenditure is 6200 and the total budget receipts are 1300 find the budgetary deficit
Calculate primary deficit

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