Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 27, Problem 27.6.7PA
To determine
The federal government's budget.
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Students have asked these similar questions
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
billion
The following graph shows the aggregate demand curve.
Shift the aggregate demand curve on the graph to show the impact of a tax hike.
130
Aggregate Demand
120
110
100
90
Aggregate Demand
80
70
10
20
30
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60
OUTPUT
Suppose the governments of two different economies, economy J and economy K, implement a tax cut of the same size. The tax cut in economy J is
permanent, while the tax cut in economy K is temporary. The economies are identical in all other respects.
The tax cut will have a larger impact on aggregate demand in the economy with the
PRICE LEVEL
Which of the following is a TRUE statement about arguments for and against requiring a balanced federal budget in the U.S.?
One argument against a required balanced federal budget is that this mandate cannot be added to the Constitution, and therefore, could not be enforced.
One argument against a required balanced federal budget is that the government does not have macroeconomic responsibilities
One argument against a required balanced federal budget is that sometimes it is necessary or beneficial to run large budget deficits in the short-run.
One argument in support of a required balanced federal budget maintains that having a balanced budget each year would make the impacts of economic recessions less severe.
Chapter 27 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 27.A - Prob. 1PACh. 27.A - Prob. 3PACh. 27.A - Prob. 4PACh. 27.A - Prob. 5PACh. 27 - Prob. 27.1.1RQCh. 27 - Prob. 27.1.2RQCh. 27 - Prob. 27.1.3RQCh. 27 - Prob. 27.1.4PACh. 27 - Prob. 27.1.5PACh. 27 - Prob. 27.1.6PA
Ch. 27 - Prob. 27.1.7PACh. 27 - Prob. 27.2.1RQCh. 27 - Prob. 27.2.2RQCh. 27 - Prob. 27.2.3PACh. 27 - Prob. 27.2.4PACh. 27 - Prob. 27.2.5PACh. 27 - Prob. 27.2.6PACh. 27 - Prob. 27.2.7PACh. 27 - Prob. 27.2.8PACh. 27 - Prob. 27.3.1RQCh. 27 - Prob. 27.3.2RQCh. 27 - Prob. 27.3.3PACh. 27 - Prob. 27.3.4PACh. 27 - Prob. 27.3.5PACh. 27 - Prob. 27.3.6PACh. 27 - Prob. 27.4.1RQCh. 27 - Prob. 27.4.3RQCh. 27 - Prob. 27.4.4PACh. 27 - Prob. 27.4.5PACh. 27 - Prob. 27.4.6PACh. 27 - Prob. 27.4.7PACh. 27 - Prob. 27.4.8PACh. 27 - Prob. 27.4.9PACh. 27 - Prob. 27.5.1RQCh. 27 - Prob. 27.5.2RQCh. 27 - Prob. 27.5.3PACh. 27 - Prob. 27.5.4PACh. 27 - Prob. 27.5.5PACh. 27 - Prob. 27.5.6PACh. 27 - Prob. 27.5.7PACh. 27 - Prob. 27.6.1RQCh. 27 - Prob. 27.6.2RQCh. 27 - Prob. 27.6.3RQCh. 27 - Prob. 27.6.4RQCh. 27 - Prob. 27.6.5PACh. 27 - Prob. 27.6.6PACh. 27 - Prob. 27.6.7PACh. 27 - Prob. 27.6.9PACh. 27 - Prob. 27.6.10PACh. 27 - Prob. 27.6.11PACh. 27 - Prob. 27.7.1RQCh. 27 - Prob. 27.7.2RQCh. 27 - Prob. 27.7.3RQCh. 27 - Prob. 27.7.4PACh. 27 - Prob. 27.7.5PACh. 27 - Prob. 27.7.7PACh. 27 - Prob. 27.7.8PACh. 27 - Prob. 27.1CTE
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Similar questions
- Which of the following sentences correctly describes the budget of the Federal Government of the Unites States during the past six decades? A. Since 1961, the Government always runs in budget deficits, meaning it spends more money than it receives every year – except for the brief period of 1998 to 2001. B. Since 1961, the U.S. Government has been an example of how to run a country on a balanced budget, meaning it balances the level of spending with the level of tax revenue. C. Since 1961, the Government always runs in budget surpluses, meaning it receives more money than it spends every year – except for the brief period of 1998 to 2001. D. Since 1961, the Government budget doesn’t show a clear trend. About half of the time, the U.S. incurs budget deficits; to compensate for that, the Government runs budget surpluses half of the time too.arrow_forwardBriefly explain the meaning of internal balance or government balanced budget.arrow_forwardMatch each of the following with the appropriate Fiscal Policy Should be used when Unemployment is High Should be used when Inflation is High Will increase GDP and Lower Unemployment Will decrease GDP and lower price levels or Inflation :: Expansionary Fiscal Policy :: Contractionary Fiscal Policyarrow_forward
- Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?arrow_forwardWhat is the Laffer curve. Graphically show how to increase the tax revenue.arrow_forwardEconomist Arthur lagger famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?arrow_forward
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