Would you kindly explain the fallacy or mistake in this type of thinking. Identify the fallacy or mistake in thinking in each of the following statements: a. Lowering taxes always lowers government revenues. b. Whenever there is a economic expansion, imports incre

Q: True or false (explain why): When a country must make an unusually arge, one-time outlay say, for…

A: A deficit arises when costs exceed income, imports outweigh exports, or liabilities exceed assets in…

Q: United States, the various state governments almost all have laws that require them to balance their…

A: Expansionary fiscal policy is utilized to launch the economy during a recession. It supports total…

Q: If the government is running a budget surplus, net export is 0. Then: i) private saving is greater…

A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.

Q: If mps is .3 and marginal propensity to import is .1 and govt. Increases its expenditures by 10…

A: Given MPS = 0.3 MPI (marginal propensity to import) = 0.1 Increase in expenditure = 10 billion

Q: Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a…

A: The table given shows the approximate value of exports and imports for the United States from 2006…

Q: The Government has various tools available to deal with the Market Failure, the few of the tools…

A: Note: Since you have posted a question with multiple subparts, we will solve the first three…

Q: larger government fiscal deficit cause a larger international trade deficit

A: ‘Fiscal deficit’ refers to the difference between total income & expenditure of the…

Q: The following table shows the approximate value of exports and imports for the United States from…

A: Net Exports = Exports - Imports. When Exports exceeds Imports, economy has Trade Surplus and when…

Q: In a closed economy model without government spending, aggregate demand is the sum of... a. Savings…

A: Aggregate Demand is the total value of goods and services in a given period of time and at given…

Q: 43. Some government regulations imposed on business have the impact of reducing productivity.  The…

A: The economic policies are the policies that are designed to stabilize the economy in case of any…

Q: small a small open economy, illustrate how a fiscal expansion (such as an increase in government…

A: Fiscal Expansion is defined as the government spending is higher than their revenue, this condition…

Q: What happens to the following variables during an expansion? a. unemployment compensation b. welfare…

A: The economy is beginning to recover at the time of expansion. Borrowing money is cheap, firms…

Q: A hypothetical economy is given by the following identities: C = 3000 I = 2000 G = 2500 T = 0.2Y…

A: The Keynesian equilibrium is one of the macroeconomic models which would result in the aggregate…

Q: Fiscal stance refers to: Select one: A. A government that takes a tough stance when it comes to…

A: Fiscal policy refers to government actions that result in a change in the level of economic activity…

Q: Which of the following statements about producers is false? a. People set up some producers who do…

A: Producers are one of the important entity in the economy.

Q: During the past five decades, there has been a shift in the composition of the federal budget toward…

A: The government budget represents the spending plans of the government of an economy for a given…

Q: if a country's economy records a surplus, how will the X and M components be represented in its…

A: National saving is the sum of public and private savings; public saving refers to the savings of the…

Q: Social security in the U.S. is funded by government expenditures current and future taxes the…

A: Note:- Since we can answer only one question at a time, we'll answer the first one. Please repost…

Q: In the country of Mordor, the government spent $100 million on swords. Prices do not rise at all,…

A: Marginal propensity to consume (MPC) is the ratio of the change in consumption (∆C) to the change in…

Q: Explain whether government spending on space exploration is an injection or a withdrawal from the…

A: Government spending or investment in a country acts as an injection as it leads to an inflow of…

Q: Assume an economy in which there are two producers (coconut producer and restaurant), consumers, and…

A: GDP: The Economic growth of a country is measured in GDP terms where GDP is the measurement of the…

Q: Is it possible for countries to achieve internal and external balance in their economies ? Explain .

A: Internal balance is the situation where the country maintain the level of full employment,…

Q: Consider the following hypothetical data for the U.S. economy in 2020 (in trillions of dollars), and…

A: Gross domestic product (GDP) is the sum of the market value of all the final goods and services…

Q: For the last 50 years or so, republicans and democrats at the national level have each favored…

A: The impact of a tax cut, Increase spending, Higher economic growth, Government borrowing, government…

Q: Hi there . can you please assist on the following question below  Describe each of the following…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The Bahamas paid a "very high price" for not using non-tariff barriers to prevent foreign producers…

A: Here we can observe that at the beginning The Bahamas had a balanced economy in agriculture…

Q: In an economy open to trade, must a government budget deficit always be accompanied by an external…

A: An open economy is when that allows its citizens to make purchase or sale of goods and services to…

Q: Using the South African SoNA 2020 as a reference, discuss examples of the different ways that the…

A: In a nation, a government has to interrupt the workings to correct some irregularities/failures that…

Q: Which system of taxes is best? Why does that system is the most effective way for the government to…

A: Mainly there are 3 types of taxes which are imposed by the government. These are proportional…

Q: Concept of demand for domestic good and domestic demand for a good the same?

A: As we know there is unlimited human wants and never ending needs .so demand refers to consumer…

Q: Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a…

A: The balance of trade is the difference between the monetary value of exports and imports of a…

Q: CHOICES: a. Both statements are TRUE b. 1st statement is TRUE, 2nd is FALSE c. Both statements are…

A: The measure that depicts final value of goods and services being produced in an economy during given…

Q: The following table shows the approximate value of exports and imports for the United States from…

A: Trade Surplus occurs when Exports exceeds Imports Trade Deficit occurs when Imports exceeds Exports…

Q: Please, explain transitions from ‘surplus’ and ‘deficit’ to an equilibrium

A: Balance of Payment is the also known as the balance of international payment is a complete…

Q: Which of the following statements about a country's budget is not true? Budget deficit occurs when…

A: Budget deficit occurs when the government spending exceeds the taxes collected The first statement…

Q: The neo-classical economists believe that export promotion and trade liberalization are synonymous…

A: Liberalizing trade means to make trade free from all the duties where countries can easily trade…

Q: The following table shows the approximate value of exports and imports for the United States from…

A: Trade Deficit occurs when Imports are greater than Exports.

Q: When the exports are less than imports, then there will be ___________. a. Budget surplus b.…

A: Exports represent goods and services produced in one country, sold or provided to residents in a…

Q: Question 5 What is meant by "a tariff on imports?" Summarize the domestic effect of a tariff on the…

A: As per company policy we are supposed to answer only one question per session, will only be able to…

Q: Why is macroeconomics important? a. it helps in determining appropriate fiscal and monetary policies…

A: Macroeconomics deasl with studying the economy as a whole. It covers a wider aspect and caters to…

Q: The following table shows the approximate value of exports and imports for the United States from…

A: GDP: GDP or gross domestic product is the estimation of the final value of all the goods and…