Analyze the potential economic impacts of a universal basic income (UBI) implementation in a highly automated economy, focusing on labor force participation rates, income inequality, and consumer spending. Evaluate the effectiveness of UBI in stabilizing economies during periods of technological unemployment and its long-term sustainability given current taxation structures.
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- The Kenya government budget for the fiscal year 2016/2017 had the following key budgetary items Cash payments for the elderly, disabled and orphans = Ksh 10 billion Salaries for civil servants = Ksh 200 billion Remunerative Allowances for constitution commissions = Ksh 30 billion Salaries for state corporations staff = Ksh 12 billion Payments for Treasury bills and Bonds = ksh 110 billion Allowances payments to civil servants = Ksh 6 billion You are also informed that sixty per cent the payments for Treasury bills and bonds was paid to foreign citizens and that the total personal incomes to Kenyans for the fiscal year was Ksh 700 billion. Use the above information to calculate the size of public sector in Kenya for the fiscal year 2016/2017.Which of the following is considered mandatory government spending? payments to Social Security recipients funding for the Environmental Protection Agency international aid to poor countries payments to active military personnel infrastructure maintenance spendingIncome Tax rates will be changed to the following Marginal Tax Rates given by: T(I) = 40*I2/ I2+1000 T is the tax rate given as a percentage I is the income of the person in THOUSANDS of dollars What is the marginal tax rate approaching as Income approaches infinity? (round the nearest hundredth of a percent)
- A general-functional form of the IS-LM model is given. A goods market is described by the following set of equations: Y = C +1+ G C = C(Y – T) where =Y - Tand hence C = C(Y") G = Go |= |(r) where dl/dr = l'(r) 0 and L, < 0 M = Mở which is money supply where the money supply is assumed to be exogenously determined by the central monetary authority, and M“ = M° which is equilibrium condition. All of the above functions are assumed to have continuous derivatives According to this model a) find the slope of LM curve and b) find the effect of a change in Go on equilibrium income level and equilibrium interest rate.In recent years, the government has implemented several changes in income tax rates, aiming to stimulate economic growth, address fiscal challenges, and ensure a fair distribution of the tax burden. This case study explores how these changes have impacted individual taxpayers, examining various scenarios and taxpayer profiles. Context: The government introduced a progressive tax reform, which included alterations in income tax rates across different income brackets. The reform aimed to provide relief to low and middle-income earners while maintaining revenue generation for essential public services. Step 1: Assessing Low-Income Earners Low-income earners, often facing financial constraints, experienced a reduction in their tax liability due to the lower tax rates in the new structure. The case study delves into specific examples of individuals in this bracket, highlighting the financial benefits they gained. Step 2: Analyzing Middle-Income Households For…In response to the Covid-19 pandemic, the Canadian government responded with an economic stimulus package that increased government expenditures. One result of this has been that Canada's combined Federal and Provincial debt rose from 65% of GDP at the beginning of the pandemic in 2020 to 92% of GDP in 2021. a) Does the deficit-financed stimulus package imply a redistribution between current and future workers? Explain your answer. b) Is there a way that workers can offset this effect? Explain your answer. c) Suppose that from now on the Federal and Provincial governments run balanced budgets and that the nominal interest rate on government debt is 2% per annum. If inflation is 2% per annum and real GDP grows at 3% per annum, roughly when will the debt-GDP ratio return to its pre-pandemic level?
- Government spending is divided into all of the following categories, except: A) welfare spending B) discretionary spending C) mandatory outlays D) interest paymentsThe Tax Cuts and Jobs (TCJ) Act of December 2017 introduced the largest reform to the U.S. tax code in more than three decades. One of the most significant changes involved the introduction and refinement of wage income taxes with standard deductions for low-income workers. This change can be introduced into the representative consumer's problem by considering a tax rate of t = 0 for the first I units of real wage income, followed by a proportional tax t on each unit of real wage income greater than r. Therefore, the consumer's optimization problem can be re-expressed as follows: Max U(C,1) subject to Jw(h - 1) + a, ifw(h – 1) 0 I. Determine the effects of the introduction of the deduction on tax payıments. In particular (a) Graph the consumer's budget constraint. (b) Determine the optimization point for the case of a person who does not pay any taxes. Graph. (c) Determine the optimization point for the case of a person who pays taxes. Graph.Q6.1) In a situation of an imbalanced state budget, a high level of indebtedness of the state finances and current economic realities, can a large-scale state-supported housing policy and social policy be promoted and promoted on a large scale? Hint: social grants, RDP programme, unemployment grants and education funding (basic and higher education)
- Which of the following is NOT counted in the "G" component of spending Group of answer choices the federal government purchases three new military fighter planes the state government spends $100 million building a new section of highway the city government pays the salaries of teachers social security payments to retireesPresident Clinton has seized the cigarette excise tax as an expedient and politically correct means of increaseing federal revenue. In 1994 the federal government took in $12 billion from the present 24-cents-per-pack tax. If the tax were quadrupled to $1 a pack, Clinton figures tax revenues would increase by more than $50 billion over three years. Those added revenues would help finance the heath care reforms the president so dearly wants. Professor Gary Becker, a Nobel Prize-winning economist at the University of Chicago,says Clinton math is wrong. The White House assumed that cigarettes sales would drop by 4 percent for every 10 percent increase in prices, not the full adjustment of smokers' behavior. Over a three-year period, cigarette consumption is likely to decline by 8 percent for every 10 percent increase in price-twice as much as Clinton assumed.As a result,the $1-a-pack tax will bring in much less revenue than President Clinton projected. According to Professor Becker, by…Identify one real world example that illustrate how fiscal policy can facilitate economic growth in a country