Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule. GOVERNMENT SPENDING AND TAXES (Billions of dollars) 80 78 76 74 - 72 70 8328% 68 66 64 + 60 + 62 4 400 420 440 of 460 480 500 520 540 REAL GDP (Billions of dollars) 560 580 600 O G 0 T Deficits Surpluses ? Consider the government spending and tax revenues schedules you plotted. When real GDP is $420 billion, the government runs a budget Use the purple triangle (diamond symbols) to shade the region between the tax revenues schedule and the government spending schedule in which the levels of real GDP are associated with government budget deficits. Then use the green triangle (triangle symbols) to shade the region between the two schedules in which the levels of real GDP are associated with budget surpluses.

Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule. GOVERNMENT SPENDING AND TAXES (Billions of dollars) 80 78 76 74 - 72 70 8328% 68 66 64 + 60 + 62 4 400 420 440 of 460 480 500 520 540 REAL GDP (Billions of dollars) 560 580 600 O G 0 T Deficits Surpluses ? Consider the government spending and tax revenues schedules you plotted. When real GDP is $420 billion, the government runs a budget Use the purple triangle (diamond symbols) to shade the region between the tax revenues schedule and the government spending schedule in which the levels of real GDP are associated with government budget deficits. Then use the green triangle (triangle symbols) to shade the region between the two schedules in which the levels of real GDP are associated with budget surpluses.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The following table provides some information on government spending (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Note: Throughout this problem you can assume, for simplicity, that government transfers are zero. Real GDP Government Spending (G) Tax Revenues (T) (Billions of dollars) (Billions of dollars) (Billions of dollars) 340 58 54 380 58 58 420 58 62 Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule. GTDeficitsSurpluses3003203403603804004204404604805007068666462605856545250GOVERNMENT SPENDING AND TAXES (Billions of dollars)REAL GDP (Billions of dollars) Consider the government spending and tax revenues schedules you plotted. When real GDP is $460 billion, the government runs a budget of . Use the purple triangle (diamond symbols) to shade the region…
Now calculate the government's tax revenue if it sets a tax of $0, $20, $40, $50, $60, $80, or $100 per bottle. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. TAX REVENUE (Dollars) 4000 3600 3200 2800 2400 2000 1600 1200 800 400 0 0 10 20 True 30 40 50 60 70 TAX (Dollars per bottle) False 80 + 90 100 pose the government is currently imposing a $60-per-bottle tax on gin. Laffer Curve True or False: The government can raise its tax revenue by increasing the per-unit tax on gin. ?
5. Automatic adjustments to the government budget The following table provides some information on government spending (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Note: Throughout this problem you can assume, for simplicity, that government transfers are zero. Real GDP (Billions of dollars) 260 300 340 Government Spending (G) (Billions of dollars) 50 50 50 Tax Revenues (T) (Billions of dollars) 48 50 52 Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule.
3. Budget balances and the national debt The following table lists federal expenditures, revenues, and GDP for the U.S. economy during several years. All numbers are in billions of dollars. Revenues Year (Billions of dollars) 1929 3.9 1948 1967 1986 2005 FEDERAL EXPENDITURES AND RE VENUES (Percent of GDP) 25 20 15 10 41.6 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the orange points (square symbol) for expenditures and the green points (triangle symbol) for revenues. Line segments will automatically connect the points. 1929 148.8 769.2 2,153.9 Expenditures GDP (Billions of dollars) (Billions of dollars) 3.1 103.6 1948 29.8 157.5 990.4 2,472.2 1987 YEAR 1986 269.2 2005 832.6 4,462.8 12,421.9 Expenditures Δ Revenues ?
Question Assume a government has $28,667 in tax revenues and $40,094 in total government spending. What is the value of the annual budget balance? Please round to 2 decimal places if needed. Be sure to include a negative sign (-) if it is a decrease and do not include a dollar sign ($) when answering.
The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by changing taxes to reduce the burden of this recession. Fiscal Policy Price Level 150 LRAS AS 140 130 120 110 100 90 80 70 60 50 40 30 AD1 AD 0 80 160 240 320 400 480 560 640 720 800 Real GDP (billions of dollars) Instructions: Enter your answer as a whole number. If you are entering a negative number Include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ billion b. If the MPC is 0.5, how much do taxes need to change to shift aggregate demand by the amount you found in part a? billion Suppose Instead that the MPC is 0.6. c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $[ billion and taxes need to change by $[ billion.
the new equilibrium level of real GDP if government spending increases by $150? 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by $150? 19. Make a graph showing the spending and tax revenue of your state government for as many years as you can find (use the government of your home country if you are not from the United States). What trends do you notice? What spending categories make up the largest share of the state budget? What are the largest sources of revenue?
Explain graphically the determination of equilibrium GDP for a private economy through the aggregate expenditures model. Now add government purchases (any amount you choose) to your graph, showing its impact on equilibrium GDP. Finally, add taxation (any amount of lump-sum tax that you choose) to your graph and show its effect on equilibrium GDP. Looking at your graph, determine whether equilibrium GDP has increased, decreased, or stayed the same given the sizes of the government purchases and taxes that you selected.
C = 450 + 0.4Y I = 350G = 150X = 70Z = 35 + 0.1Y T = 0.15YYf = 1550Calculate the tax revenue to the government of this country when the economy (2) remains in equilibrium.Calculate what the new equilibrium income should be if the government of this (6) country decides to cancel all taxes, implying the tax rate would now be 0%.Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550 Calculate the tax revenue to the government of this country when the economy remains in equilibrium. Calculate what the new equilibrium income should be if the government of this country decides to cancel all taxes, implying the tax rate would now be 0%. Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
Fill in the table below to answer the next five questions. Assume that l", G and NX are fixed. Consumption Planned Government Net Exports Aggregate Change in Real GDP (Y) (C) Investment (Ip) Expenditures (G) (NX) Expenditures (AE) Inventories 10000 11000 550 12000 1000 13000 10520 14000 11320 15000 12120 730 You are told that the aggregate level of taxes is equal to 50. What is the value of autonomous consumption? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 160 180 140 d 200
The table below shows hypothectical figures of revenue and spending for the Canadian government. For simplicity, assume that all of the spending grants to other levels of government were spent in Canada on goods and services. Federal Government's Budget Plan for Fiscal Year ($billion) REVENUES OUTLAYS Personal income taxes $100 Transfers to persons $46 Corporate income taxes 34 Spending grants to other levels of government 38 Other income taxes 7 Public debt charges 35 GST and excise taxes 47 Direct program spending 95 EI premiums 14 Total Outlays 214 Other revenues 18 Projected Budget Plan Surplus 6 Total Revenues 220 a. The projected NTR in this budget plan is $ billion. b. The value of NTR less government spending on goods and services (G) is $ billion. Round your answers to 1 decimal place. c. The percentage of total revenue made up by personal income taxes is %. d. The percentage of total revenue…