What is the difference between indirect taxes and net indirect taxes? Macro economics

Q: In what situation can property tax become a regressive tax? When the property owner starts living on…

A: Given the question is  In what situation can property tax become a regressive tax.  When the…

Q: C = 1,600 + 0.8(Y – T)                         I = 1000                         G = 1,800…

A: C = 1,600 + 0.8(Y – T) I = 1000  G = 1,800                 X = M = 0 T =  3,000 + 0.01Y

Q: The government started imposing a Digital Services Tax (DST) of six per cent on 1 January 2020 on…

A: Demand is the absolute quantity of goods and services that a consumer is willing to buy at different…

Q: What can you say about Tax incidence in your country, who carries the burden more? Give examples and…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: Consider an economy in which tax collections are always $400 and in which the four components of…

A: Given the table, To find the equilibrium of this economy graphically, graph AE curve and the…

Q: (1) Tax system contributes to reduce inequality and control consumption-Explain in your own words.

A: Government levies taxes on consumers to generate resources to provide public goods like defence,…

Q: What are problems that governments may encounter in enacting and applying fiscal policy? Explain the…

A: Fiscal policy refers to the changes in federal government purchases and taxes. The government…

Q: Discuss examples of the different ways that the government intervenes in the economy.

A: Government intervenes refers to an action plan of government or public entity in order to have a…

Q: Differentiate the macroeconomic effects that explain the causes of the differences of government…

A: Aggregate demand is an indicator of the overall amount of demand generated in an economy for all…

Q: Why do you think increase in government expenditure causes crowding-out effect (use graphs when

A: Crowding out is an economic theory that refers to the fall in the demand for Private investment…

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

A: Tax revenue is the percentage of the GDP (Y) which tells about that share, that is collected by the…

Q: Use the following information on economy X to answer the questions below. Consumption function: C…

A: Given that,  Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending:…

Q: 9) Which of the following sequence of events follows an increase in net taxes? A) ADĮ = Y = Mdį =…

A: Increase in net taxes imply fall in the disposal income.

Q: If the government got rid of sales tax, how might this affect the market? shift AD to the right…

A: When the government rid of sales tax, then the price of the goods decreases. Decreasing price leads…

Q: In each case, state the direction of the change and give a formula for the size of the impact. a. An…

A: [a] Moving according to the Keynesian cross model, there is AD and AS play an important role. Due to…

Q: The economy of Godzillaland is represented by the following: C=50+0.25Y d , T=1000, G=1000, I=100.…

A: equilibrium income is determined by equating AE with Y where AE = C + I + G

Q: Discuss the impact of taxes and autonoumous consumption on the price level.

A: Collection of tax moves the market to another point of equilibrium where the price of a commodity…

Q: of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real…

A:

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: Illustrate each of the following situations with a graph showing IS curve: a. An increase in…

A: The IS curve slopes downward from left to right because as the interest rates falls, investment…

Q: C= C0+cYd. Investment, government spending, taxes and transfer payment is autonomous. Autonomous…

A: When planned aggregate expenditures, C+I+G, equal collective output, equilibrium income is…

Q: Consider the following government policy initiatives for an economy consider the short-term and…

A: Corporate taxes are taxes which are paid by companies on their profits, which falls under the…

Q: Consumer saves 15% of additional income, spends 65% of income on goods and services and spends 20%…

A: The tax multiplier can be calculated by using the following formula.

Q: Which of the following statements illustrate a regressive tax? Tom gets a new job and his income…

A: A regressive tax is mainly applied in a manner that the tax rate decreases as the total taxable…

Q: Shift the aggregate demand curve on the graph to show the impact of a tax cut

A: Shift in aggregate demand is occur when there is any change in consumption, income, government…

Q: C = 450 + 0.4Y  I = 350  G = 150  X = 70  Z = 35 + 0.1Y  T = 0.15Y  Yf =  1550 Q.2.5  Calculate…

A: equilibrium in Keynesian model where the aggregate demand equal the aggregate income

Q: The IS relation implies that the taxes increase leads to output decrease. Explain

A: It's difficult to quantify the economic effects of tax changes on economic growth, as measured by…

Q: Provide a brief explanation for autonomous and induced expenditures.

A: Expenditures represents the amount spent on purchase of goods and services. It includes expenditures…

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: Use the following information to solve the question: Total income = 40 000 Autonomous consumption =…

A: Total Consumption includes autonomous consumption and induced consumption. Total Consumption=…

Q: Choose... Choose.. Decrease in government expenditure Increase government expenditure Decrease in…

A: Fiscal policy involves the use of tax and government spending to influence the economy. Autonomous…

Q: Suppose a government collects $12 billion in various tax revenues and pays $2.5 billion in debt…

A: * ANSWER :-        The Given data is   Various tax revenues =$12 billion Debit interest =$2.5…

Q: What is the distinction between government purchases and transfer payments? What is the relative…

A: If we consider the gross domestic product (GDP)  formula then it can be written as: GDP =…

Q: draw a AD/ AS diagram to show the effect of raising and increasing intrest, icome tax, corporate tax…

A: Aggregate demand and aggregate supply determine the price and output level in the goods market .

Q: Logically discuss the impact of the increase in government taxes on consumption.

A: Taxes are the compulsory payments made by any firm or an individual to the government without having…

Q: An economy is described by the following equations: C=150+0.5 YD I=150 G=200 T=? What is the value…

A: Aggregate expenditure (AE) in closed economy is the sum of consumption, investment, and government…

Q: For the U.S. government, which of the given is NOT an example of discretionary spending? defense…

A: Answer is Medicare. Medicare spending is not an example of discretionary spending and it does not…

Q: What are the justifications for imposing tax on consumption instead of income by the government of…

A: Consumption tax argue that it encourages saving and investment and makes the economy more efficient.…

Q: New findings suggest tax increases reduce real GDP (Romer and Romer, 2008).

A: desclaimer :- as you posted multiple questions we are supposed to solve only the first one.…