Q: given Market demand is P(Q)= 5.2-0.1Q, market supply P(Q)= 2+ 0.1Q, price floor of 4.40. What is the…
A: Answer to the question is as follows:
Q: 21) "A $10 billion increase in taxes and a $30 billion cut in government spending" is the example of…
A: Fiscal policies are the ones that are related to the collection of revenue and decision of spendings…
Q: How does fiscal policy affect the equilibrium income in an economy
A: The fiscal policy is the use of government revenue (taxes or tax cut) and the government…
Q: Explain how the conduct of fiscal policy affects consumption and investment in equilibrium.
A: Fiscal policy is a macroeconomic policy that is implemented by the government for monitoring and…
Q: If the MPC is 0.9, then the tax multiplier is a. -0.1 b. -1.11 c. -9 d. -10
A: Keynesian economics is known as demand-side economics because according to Keynesians economics the…
Q: fiscal policy
A: There are two policies which go hand in hand to regulate or stimulate the economy. The monetary…
Q: What would happen to real GDP and the price level if the government decides to boost expenditure…
A: GDP calculates the monetary value of the final goods and services—those purchased by the…
Q: A recessionary expenditure gap
A: There are two types of gap, depicts different situation: Inflationary gap and…
Q: When government increases a fixed tax, consumption schedule a. shifts downward in a parallel…
A: - A tax rate which is a lump sum tax and is not measured as a percent of the base tax is referred…
Q: Kelly’s taxable income is $110,000. Approximately what percent of her taxable income is her tax?…
A: Kelly's Taxable Income is $110,000 Kelly's Taxable Income is between 43,650 or 112,650 where tax is…
Q: Which one of the following statements regarding fiscal policy and the budget is correct?(a) When…
A: The two kinds of macroeconomic policies adopted to tackle the demand or supply shocks faced by an…
Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…
A: Fiscal policy is used by governments that have an economic influence. Changes in taxation and…
Q: The economy of Godzillaland is represented by the following: C=50+0.25Y d , T=1000, G=1000, I=100.…
A: equilibrium income is determined by equating AE with Y where AE = C + I + G
Q: What is the difference between government expendituresand government purchases?
A: Government payment is that the quantity of cash spent by the govt on buying merchandise and…
Q: One of the arguments against using fiscal policy is __________. Group of answer choices tax cuts…
A: The case against discretionary fiscal policy rests on two arguments: First, the possibility of…
Q: Critically evaluate the impending rise of sales tax planned by the Japanese government and its…
A: The authorized (GDP) gross domestic product sculpture though was more diminutive than the 7.1% drop…
Q: Propose the Fiscal Policy needed to fix this economy.
A: A) Cost push inflation (Graph Type) In graph we can there is an increment in the price level because…
Q: Which statement below is true of ONLY fiscal policy? Uses government expenditures to create demand…
A: The aggregate demand refers to the total amount of all the goods, and services which are demanded in…
Q: Which of the following is NOT a fiscal policy action? Group of answer choices decreasing government…
A: The answer is - raising the quantity of money in circulation
Q: Calculate net indirect taxes if GDP at FC is $33,000 and the GDP at MP is 37,000
A: The data presented in the question above is:- GDPFC = $33,000 GDPMP = $37,000 Net indirect taxes is…
Q: T F Fiscal policy determines the level of interestrates.
A: Fiscal policy refers to the taxation and expenditure decisions of the government that influences a…
Q: To enact Contractionary Fiscal Policy, the federal government must be running a budget ___________.
A: Contractionary fiscal policy is the point at which the public authority either reduces spending or…
Q: Consumer saves 15% of additional income, spends 65% of income on goods and services and spends 20%…
A: The tax multiplier can be calculated by using the following formula.
Q: Which of the following statements illustrate a regressive tax? Tom gets a new job and his income…
A: A regressive tax is mainly applied in a manner that the tax rate decreases as the total taxable…
Q: EXPLAIN THREE WAYS IN WHICH TAXATION AND GOVERNMENT SPENDING IMPACT THE ECONOMY POSITIVELY AND…
A: Positive impact of taxation Cutting taxes enhance demand by increasing disposable income and…
Q: A cut in personal taxes on households’ income: A shifts the aggregate demand curve to the left. B.…
A: Taxes bring down families' net income. The sum gathered in taxes doesn't discover its way into…
Q: Which of the following is true regarding the simple tax multiplier?
A: The multiplier impact of a tax reduction can be impacted by the size of the tax break, the MPC to…
Q: What is fiscal imbalance? Fiscal imbalance is the _______ value of the government's commitments…
A: What is the fiscal imbalance? Fiscal imbalance refers to a situation where all of the government's…
Q: how does the subsidies shift us from the MPC curve to the MSC curve ?
A: Externalities can arise between producers, between consumers or between consumers and producers.…
Q: What is the best policy to implement with regard to taxes?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
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: Strengthts and weaknesses of fiscal policies.
A: Fiscal policy refers to the policy by government to control the aggregate demand or stabilise the…
Q: Which of the following is incorrect regarding tax revenues? a.they increase during recessions…
A: The correct solution is option a.
Q: Which of the following is an example of fiscal policy? Select an answer and submit. For keyboard…
A: Fiscal Policy refers to the measures employed by the governments to stabilize the economy of the…
Q: Identify the effects of fiscal policy on the economy
A: Fiscal policy refers to the government policy that stabilizes th economy through bring changes in…
Q: How can fiscal policy eliminate GDP gap
A: Fiscal policy refers to how the government uses spending and tax policies to influence economic…
Q: Which of the following is a limitation to fiscal policies? 1 The zero bound interest rate. The…
A: The economics as a study is based upon the idea that the resources which the economies have with…
Q: the impact of fiscal policy on the aggregate price level, unemployment and income
A: The policy that makes use of a collection of revenue of government and expenditure by the government…
Q: What is macro stability and resource mobilization in fiscal policy?
A: In an economy, fiscal policy implies the action of the government to influence the aggregate demand…
Q: When the Federal government takes action to change taxes and spending to stimulate the economy such…
A: Federal government can increase or decrease taxes and government spending to change the money supply…
Q: Can you suggest fiscal solutions for the economic problems of the United States between 2000-2005
A: The economic problem of the United States between 2000-2005 was a major dropdown for the country's…
Q: Gokhale and Smetters (2003) found that the long-run fiscal imbalance in the U.S. government budget…
A: Gokhale and smettersbth economist of America researched on fiscal imbalance of America.In 2003,they…
Q: Which of the following BEST shows fiscal policy? A The Federal Reserve buys bonds. The United States…
A: Here federal reserve open market buy operations, printing more money or increasing supply of money…
Q: A change in which of the following variables will have NO direct effect on domestic demand?domestic…
A: In economics, the final demand domestically can be defined as the total demand for final services…
Subsidies are a part of ___________ expenditure
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- Do you agree or disagree with this statement: “It is in the best interest ofoureconomy forCongress and the President to run a balanced budget each year.” Explain your answer.Explain any two important feature of revenue expenditure!Which of the following importation is not subject to consumption tax? * Importation of ornamental seashells Importation of bottled drinking water Importation of ingredients used for finished feeds Importation of wood All of the above
- 20 Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance? Enter your answer to two decimal places. budget balance: $ In the last fiscal year, Lilliput was running a budget surplus a budget deficit a balanced budget billionWhat is a surplus unit? What is a deficit unit?# Any movement along the deman curve for a good can be termed as __________
- Revenue from tax is always greater than government spending in SouthAfrica;QUESTION 18 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The market then sells them to its customers for $10/lb. Question 18. What is the net tax paid by the wholesaler? O a. $0.15 O b. $0.45 c. $1.15 d. $0.30 O e. None of the Above QUESTION 19 For most companies, Tax Havens offer the benefits/advantages of_ O a. More sales and lower costs of production O b. Easier access to their markets and less regulation O c. Lower taxes and more regulation Od. Less regulation and lower taxes O e. Larger markets and less regulation andA government has to safeguard its markets. Explain how subsidies play a major role in stabilizing revenues in detail giving examples.