Consider the economy of Canada. Its households spend 55% of increases in their income and saves 45 %. There are no taxes and no foreign trade. Currently, Canada has a recessionary gap, the governments aim is to get actual output to increase by 220 billion dollars. How much of a tax cut do they need to have to achieve the overall increase in output of 220 billion dollars?

This is from a practice worksheet. Please help me

An inflationary gap is how much GDP needs to decrease from the current GDP to maintain employment while avoiding inflation. Let us say that we are experiencing an inflationary gap of $200 million.  The government decides to increase taxes.  Assume that the MPC equals .80. What will be the tax increase?

The government decides that it will cut taxes in an attempt to move the economy out of a severe recession

How much more output does the $20 trillion U.S economy produce when GDP increases by 1.0 percent?

The following table shows the approximate value of exports and imports for the United States from 1983 through 1987. Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth. Year GDP Exports Imports Exports – Imports (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Percentage of GDP) 1983 3,535.0 277.0 328.6       1984 3,931.0 302.4 405.1       1985 4,218.0 302.0 417.2       1986 4,460.0 320.3 452.9       1987 4,736.0 363.8 508.7       Source: “Income, Expenditures, Poverty, & Wealth: Gross Domestic Product (GDP),” United States Census Bureau, United States Department of Commerce, last modified September 2011, accessed June 10, 2013, https://www.census.gov/library/publications/2011/compendia/statab/131ed/income-expenditures-poverty-wealth.html.   Between 1983 and…

The following table contains data for a hypothetical closed economy that uses the dollar as its currency.  Suppose GDP in this country is $1,540 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (GG)   Taxes minus Transfer Payments (TT) 455 Consumption (CC) 700 Investment (II) 490   Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (S)  =  =      (y-t-g, g-t, y-c, y-c-g)    =  =      (C,G,Y,I)       $  ______million

In a recession spending is Krugman (who is a Keynesian) the government should taxes and spending. less than, cut, increase more than, cut, cut more than, cut, increase 58 less than, increase, cut than the productive capacity of the economy. According to Paul government

There is $10 trillion in the loanable funds market.  $6 trillion in private borrowing and $4 trillion in government borrowing.  The federal government increases its borrowing to $5 trillion, crowding out $1 trillion in private borrowing.  Interest rates remain the same.  Make an argument that the GDP remains the same and that we don’t care about the crowding out.

Answer the following questions: As you know, the US government has been running budget deficits for several years now. In your opinion, and based on economic reasoning, what will happen to the US economy if the US Federal Government continues to run annual budget deficits for the next decade. Will the economy survive that? Will the economy grow? Will it grow as fast as it could? Will the deficits cause the economy to grow faster? Will it grow at all? These are some of the questions you might address in your primary post.