Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 24, Problem 28APA
To determine
Identify the effect of the budget deficit on investment, real interest rate, and
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Briefly analyse the various policy measures that a government might have to undertake to deal with and finance a growing fiscal deficit
8. Agreement and disagreement among economists
Suppose that Rajiv, an economist from a university in Arizona, and Simone, an economist from a university in Massachusetts, are arguing over budget
deficits. The following dialogue shows an excerpt from their debate:
Simone: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best
course of action to remedy this situation.
Rajiv: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits.
Simone: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.
The disagreement between these economists is most likely due to
differences between perception versus reality
Despite their differences, with which proposition are two economis
differences in values
O Rent ceilings reduce the quantity and quality of available
differences in scientific judgments
O Having a single…
7. Agreement and disagreement among economists
Suppose that Paolo, an economist from a research institute in Alberta, and Sharon, an economist from a public television program, are arguing over
budget deficits. The following dialogue shows an excerpt from their debate:
Sharon: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best
course of action to remedy this situation.
Paolo: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits.
Sharon: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.
The disagreement between these economists is most likely due to
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
O Employers should not be restricted from outsourcing work to foreign nations.
O Central banks should focus more on maintaining low…
Chapter 24 Solutions
Macroeconomics
Ch. 24.1 - Prob. 1RQCh. 24.1 - Prob. 2RQCh. 24.1 - Prob. 3RQCh. 24.1 - Prob. 4RQCh. 24.2 - Prob. 1RQCh. 24.2 - Prob. 2RQCh. 24.2 - Prob. 3RQCh. 24.2 - Prob. 4RQCh. 24.2 - Prob. 5RQCh. 24.3 - Prob. 1RQ
Ch. 24.3 - Prob. 2RQCh. 24.3 - Prob. 3RQCh. 24.3 - Prob. 4RQCh. 24.3 - Prob. 5RQCh. 24.3 - Prob. 6RQCh. 24.4 - Prob. 1RQCh. 24.4 - Prob. 2RQCh. 24.4 - Prob. 3RQCh. 24 - Prob. 1SPACh. 24 - Prob. 2SPACh. 24 - Prob. 3SPACh. 24 - Prob. 4SPACh. 24 - Prob. 5SPACh. 24 - Prob. 6SPACh. 24 - Prob. 7SPACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - Prob. 10SPACh. 24 - Prob. 11SPACh. 24 - Prob. 12SPACh. 24 - Prob. 13APACh. 24 - Prob. 14APACh. 24 - Prob. 15APACh. 24 - Prob. 16APACh. 24 - Prob. 17APACh. 24 - Prob. 18APACh. 24 - Prob. 19APACh. 24 - Prob. 20APACh. 24 - Prob. 21APACh. 24 - Prob. 22APACh. 24 - Prob. 23APACh. 24 - Prob. 24APACh. 24 - Prob. 25APACh. 24 - Prob. 26APACh. 24 - Prob. 27APACh. 24 - Prob. 28APACh. 24 - Prob. 29APACh. 24 - Prob. 30APA
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- 8. Agreement and disagreement among economists Suppose that Edison, an economist from a research institute in Texas, and Hilary, an economist from a nonprofit organization on the West Coast, are arguing over budget deficits. The following dialogue shows an excerpt from their debate: Hilary: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation. Edison: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits. Hilary: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. The disagreement between these economists is most likely due to a.differences in scientific judgments . b.differences between perception versus reality . c.differences in values Despite their differences, with which proposition are two economists chosen at random most…arrow_forwardU.S. budget deficit widens to near two-year high Over the year to June 2016, the U.S. federal government deficit totaled $523 billion, which is 20.6 percent higher than a year earlier. Source: The Wall Street Journal,July 13, 2016 Given the information in the news clip, by how much did U.S. national debt change between June 2014 and June 2016? The budget deficit in 2015 was enter your response here ------------billion.arrow_forwardUse the orange line (square point) to graph the new supply of loanable funds as a result of this government policy to borrow $20 billion more next year than this year. Interest Rate (Percent) 10 9 0 Demand 10 20 30 40 50 60 70 80 Loanable Funds (Billions of dollars) Supply As a result of this policy, the equilibrium interest rate rises 90 100 Public saving decreases by less than $20 billion. National saving decreases by less than $20 billion. Private saving increases by less than $20 billion. Investment decreases by more than $20 billion. The more elastic the demand for loanable funds, the Which of the following statements accurately describe the effect of the increase in government borrowing? Check all that apply. New Supply A more elastic supply of loanable funds would result in national saving changing by This belief would cause people to save This would ? as a result of the increase in government borrowing. the change in national saving as a result of the increase in government…arrow_forward
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