in another economy, the MPC = 4/5, government needs to increase expenditures $20 to complete a project, but it does not want to increase debt so it increases taxes $20 also. What, if any, will be the change in output generated by this balanced - budget expenditure scenario?
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- Give typing answer with explanation and conclusion Suppose that the typical Canadian spends 80 percent of their income. There is an income tax rate is 15% per period. If the government wanted to see the effect of a tax cut of $50 billion, what would be the tax multiplier that they would have to use.1.Suppose MPC = 0.75, if government increases taxes by $2,000, how much will the household consumption increase or decrease initially?Mathematically prove that balanced budget multiplier is one. Interpret it
- Government spending in Robok is $90 billion, and its only tax is an income tax with a marginal tax rate of 0.15. a. The balance on the government's budget at a GDP level of $380 billion is a (Click to select) v of $ billion. b. The balance on the government's budget at a GDP level of $700 billion is a (Click to select) v of $ billion. C. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ billion.Suppose the government seeks to achieve a balanced budget by levying taxes of $50 billion and making expenditures of $100 billion. How will this affect GDP if MPC=0.8?Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2. a. The balance on the government's budget at a GDP level of $450 billion is a (Click to select) : of $ billion. b. The balance on the government's budget at a GDP level of $800 billion is a ( (Click to select) : of $ billion. C. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ [ ]billion.
- If you were given the chance to create or amend the 2021 National Budget Plan, What executive department should receive the lion's share (biggest budget)? note: Please choose Department of Health because of COVID-19 pandemic. - What are the projects and programs that needed to be implement? Are these revenue expenditures or capital expenditures? - Is it for long term or by phase implementation? - Where are the locations of the projects? Urban areas or rural areas? - How long do you see the department getting the lion's share? Justify the forecast.Suppose the government wishes to eliminate an inflationary gap of $100 billion and the MPC is 0.5. how much must the government cut its spending? b) what would be the effect of the government increasing taxes by this amount?A fiscal stimulus was initiated by President Obama in response to the economic downturn of 2008-2009. At that time, the president’s economists estimated the multiplier to be a. 2.4 for government purchases and 1.4 for tax cuts. b. 3.2 for government purchases and 2.0 for tax cuts. c. 1.6 for government purchases and 0.4 for tax cuts. d. 1.6 for government purchases and 1.0 for tax cuts.
- Suppose the MPC is 0.8. What is the tax multiplier in this economy? If the government were to lower taxes by $250 in this economy how much would Total Spending change as a result? Show your work.Suppose the MPC is 0.8. The government wants to decrease Total Spending by $600. How should it change G to achieve this goal? Show your work?If the MPC in an economy is .8, government could close a recessionary expenditure gap of $200 billion by cutting taxes by?
