Which of the following accurately describes the phenomenon of crowding out?     government borrowing pushes up interest rates, driving out private investment and consumption     government spending drive up the budget deficit     government spending causes more goods to be allocated to the public sector and fewer are available for the private sector     Increasing the proportion of public sector spending in the composition of GDP renders production less competitive and therefore less efficient.

Q: Before the Great Depression of the 1930s, the majority of government spending took place at the and…

A: Before the Great Depression of the 1930s, the majority of government spending took place at the…

Q: Which types of budget cuts only reduce areas that have overspending? Group of answer choices…

A: Budgets refers to the preparation of the spending plans based on the income. Budgets are prepared by…

Q: What is a budget surplus? Outline the benefits and use of a budget surplus in macroeconomic…

A: The government expenditure level and the amount of tax collection determine whether the government…

Q: If the government is running a budget surplus, net export is 0. Then: i) private saving is greater…

A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.

Q: Economy may be in equilibrium if both private and public sectors are not in equilibrium separately…

A: In a three-sector economy,without having of any trading relationship with the outside world the GNP…

Q: Federal Government's Budget Plan for Fiscal Year ($billion)          REVENUES     OUTLAYS   Personal…

A: Budget plan refers to that plan which provides estimates of the future revenues and expenses.

Q: Voters rarely get to choose the exact level of spending on a public good. Instead, they are provided…

A: The Leviathan theory is a political theory that was developed by the English philosopher Thomas…

Q: Public deficits arise whenever government expenditure exceeds government receipts. This phenomenon…

A: Public Finance is referred to as the study of a governments activities, which includes spending,…

Q: On Friday, 27 September, 2019, the Minister of Finance, Honourable Dr. Bwalya Ng’andu, MP, presented…

A: Taxation Tax is the main source of revenue for the government of the nation. Tax is of two types…

Q: In South Africa state-owned enterprises (SOE) and labour unions are currently putting pressure on…

A: Government expenditure is important for economy. Politicians,bureaucrats,interest groups have the…

Q: One concern about the government borrowing in order to finance its projects is known as the…

A: The aggregate demand curve jn a closed economy comprises of AD = C + I + G where C = consumption, I…

Q: An economy Is described by the following equations: C = 500 + 0.85(Y - T), Cis consumption, Y is…

A: C=500+0.85(Y-T) M=0.05(1-t)Y IP=1500 G=400 T=ty

Q: Question 4: (i) Consider an economy where government consumption is 22% of GDP, government…

A: Note:- “Since you have asked multiple question, we will solve the first question for you. If you…

Q: ich of the following is an example of a "government failure"? Government implementing a balanced…

A: Government failure, with regards to public financial aspects, is a monetary shortcoming brought…

Q: (1)     an increase in government spending of $100 that results in a deacrease of private investment…

A: The crowding out effect is a macroeconomic hypothesis contending that rising public area spending…

Q: Which of the following is a category of fiscal policy?A) government policies regarding transfer…

A: Since you posted multiple subpart questions, we will provide the answer for first three subpart…

Q: A market that is operating efficiently     maximizes total surplus.     maximizes consumer…

A: A circular flow of income/money is the continuous circular flow of money and goods &…

Q: The Kenya government budget for the fiscal year 2016/2017 had the following key budgetary items…

A: Public Sector will include : Cash payments for the elderly, disabled and orphans  Salaries for…

Q: If the equilibrium GDP is 4000 billion, full employment GDP is 5000 billion, marginal prosperity to…

A: Marginal propensity to consume (MPC) = 0.80Spending multiplier = 1(1-MPC) = 1(1-0.80) = 10.2 =5…

Q: Suppose that the government decreases its autonomous spending by $100 billion and also decreases its…

A: Gross domestic product is the sum of a country's final goods and services. The increase in GDP…

Q: True or False: Fiscal policy refers to government actions related to taxation and government…

A: A government is a framework or association that practices authority and command over a particular…

Q: Given the following table: GDP=DIC 291 357 423 102 154.8 207.6 a. Any change in spending will change…

A: Gross Domestic Product (GDP) is a key metric used to measure the economic activity of a country. It…

Q: Please place these budget process steps in order from first to last: Systematic audits are conducted…

A: Budget refers to the process of making a detailed plan for distribution of funds and resources over…

Q: True or false? A fiscal policy is ineffective in a situation of perfect mobility of capital.

A: The use of government spending and tax policies to impact economic conditions, particularly…

Q: Definition of expenditure control measure

A: Expenditure can be defined as the payments made for the purchase of any goods or services where…

Q: At any given interest rate, many major businesses become pessimistic about the future profitability…

A: Demand curve for the loanable fund shows the level of demand for loan at different interest rate.…

Q: The following set of equations describes the economy of a country A, in Africa C = 2000 + 0.75Id…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: esults in a reduction in the budget deficit. This fiscal policy action results in an increase in the…

A: A situation that occurs when expenses tend to exceed revenues is known as a budget deficit. This…

Q: OilPatch is a mineral rich economy in which the government gets most of its tax revenue from oil…

A: Initially, the government introduced an income tax of $2 per hour worked.Then it doubled its income…

Q: Suppose autonomous government spending increases by $100 billion and the value of the MPC is 0.6.…

A: Formula:  Multiplier = 1/(1-MPC)  Calculate multiplier as follows:  Multiplier = 1/(1-MPC)  =…

Q: Subsidies are a part of ___________ expenditure

A: Any financial support which is presented as an incentive by the government to any sector or public…

Q: List the three most important expenditure programs of the federal government. How do they differ…

A: The three most important expenditure programs of the federal government are Social Security,…

Q: Higher corporate taxes, higher capital gains taxes, and higher marginal tax rates shift aggregate…

A: A charge that is being imposed by the government on the income of individuals, goods or services or…

Q: In 2018, the Government of the Federated Republic of Coconut Islands had a budget surplus of $20…

A: Budget = Tax revenue - Government expenditure +20 = tax revenue -324 Tax revenue = 344

Q: The structure of an economy is completely described by the following equations: (1) C = 20 +…

A: C = 20 + 0.7(Y-T)T = 0.3Y Putting T in C C = 20 + 0.7(Y-0.3Y) C = 20 + 0.7(0.7Y) C = 20 + 0.7(0.7Y)…

Q: Elaborate the objective of 'allocation of resources' in the government budget.

A: A statement that shows the itemwise estimated receipts and expenses of the country during a fiscal…

Q: C = 450+0.4y I = 350 G = 150 X = 70 Z = 35+0.1y T = 0.15y Yf = 1550 - Calculate the…

A: Answer: Given: C = 450+0.4y I = 350 G = 150 X = 70 Z = 35+0.1y T = 0.15y Yf = 1550 Calculation: (1).…

Q: The actual GDP is currently $100 billion per year and potential real GDP is currently $200 billion.…

A: Use the below formula: GDP gap = Potential GDP - Actual GDP

Q: Which of the following sources of revenue is used to fund government spending? A) corporate…

A: Government expenditure is the amount of money allocated by the public sector for the acquisition of…

Q: An economy has the following characteristics: Y = National income Taxes = T = 0.25Y C = Consumption…

A: Aggregate expenditure is the sum of consumption, investment, government and net exports.  AE =  C+ I…