Refer to the accompanying table for Waxwania.   Government Expenditures, G Tax Revenues, T Real GDP $190 100 $500 190 120 600 190 140 700 190 160 800 190 180 900 a. What is the marginal tax rate in Waxwania?  ____percent        --The average tax rate?  _____percent

Q: 6. Explain how built-in (or automatic) stabilizers work. What are the differences between…

A: GDP is the sum of consumption, investment, government spending and net exports.  GDP = C+I+G+NX

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A: Fiscal policy is a policy used by the government to stabilize the economy. It uses taxes and…

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A: find below the answer.

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A: Fiscal Policy refers to changes in the government expenditure or tax rates in order to bring the…

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A: Fiscal and monetary policies are used by governments to achieve certain economic goals. The monetary…

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A: When talking about debt-to-GDP ratio, it is the economic measurement of total borrowings of the…

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A: Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.8) = 1 / 0.2 = 5 It means that, if income increases by $1 ,…

Q: 18. What is the new equilibrium level of real GDP if government spending and taxes both increase by…

A:

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A: Open economy refers to the type of economy that keeps interactions with the outside economies in the…

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A: As per the guidelines, we only question one question at a time. Please resubmit the other…

Q: QUESTION 34 1 Q = 1- mpc + mpc t (Ca +I+ G+ Xn) %3D 1 AQ (AC,`+ AI + AG + AX„) 1- mpc + mpc · t |…

A: Autonomous spending is the spending at zero level of income. For the given equation the autonomous…

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A: MPC=34MPC=0.75

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A: Answer; Increase in tax rate = 28 -22 = 6%.

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A: People are forward-looking and believe in consumption smoothing, according to Ricardian…

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A: Economists use the marginal propensity to save (MPS) to measure the link between income and savings.…

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A: (a)Following below is the graph depicting the aggregate demand level during recession: From the…

Q: Given the following model for an economy C = 100 + 0.8Yd G = 800 T = 500 I = 200 d)      Find…

A: d. The Tax multiplier can be calculated with the help of the MPC and the MPS in the economy. The MPC…

Q: The following graph represents our economy Note MPCB CRAS SRAS PeLeve 14 100 14 Re OP n S 1. What…

A:

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A: Given, Gap = 100 billion MPC = .075

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A: Given information,  Tax multiplier: -6 Change in taxes: -$100 billion To find: change in output

Q: Question: Given the following model for an economy C= 100 + 0.8Yd G= 800 T= 500 T= 200 d) Find Tax…

A: Given, C = 100 + 0.8Yd G = 800 T = 500 I = 200

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A: Aggregate demand refers to the overall demand for goods and services in an economy. The aggregate…

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Q: 16) What is the first signal that policy makers may need to examine expansionary fiscal economic…

A: Expansionary fiscal policy : Due to increment in government expenditure , there will be increase in…

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A: Expansionary fiscal approach incorporates tax breaks, move installments, refunds and expanded…

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A: Tax multiplier calculates the ratio of change in GDP(gross domestic product) and T(tax).

Q: 17 of 25 If the federal government increases govemment spending to increase aggregate demand and…

A: Sometimes higher government spending lowers consumption spending and investment spending.

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A: The value of government purchase multiplier is: The tax multiplier is:

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A: Re-arranging the functions : Consumption function : C = C0 + bY - bT  Tax : T = T0 + tY Similar…

Q: 16. If consumers in a country spend 4/5 of their disposable income. If their government decreases…

A: Aggregate demand is the entire demand for all completed products and services produced in a given…

Q: C = 600 + 0.8Yd , Yd = Y – T, Tg = 100, I= 200, R = 50, G = 350, X = 250 and M = 200 + 0.1Y.   How…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: xplain the supply-side effects of fiscal policy on employment and potential GDP

A: Employment increases when production activities increase in the economy because when producers…

Q: he data below is for the small economy of Christodea in 2015. Consumption: C = 500 + 0.75Y, Net…

A: Investment multiplier = (1 / 1 - MPC) = (1/ 1- 0.75) = 4 a) So, for government to decrease…

Q: Which of the following statements is/are ALWAYS true? i A tax is progressive because the tax rate…

A: Answer: Progressive taxation: When the tax rate increases as the taxable income increases it is…

Q: 1. What is fiscal policy? 2. What are the shortcomings of fiscal policy? 3. What is supply-side…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: Question 2 Given the following information: 1= 150, G = 150, T-150 and C= 150 +0.75(Yd) At least 2…

A: Consumption function as a tournament consumption and induced consumption. Autonomous consumption…

Q: Suppose that there are no crowding-out effects and the MPC is 0.8. By how much must the government…

A: Hi! thanks for the questions but as per the guidelines, we can answer only one question at one time.…

Q: Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $160…

A: The level of a budget deficit is the level that refers to the excess spending of the government as…

Q: (a) Assume Consumption (C) is given by the equation C = 500 + 0.6(Y – T). Taxes (T) are equal to…

A: Aggregate expenditure equation in closed economy: AE = C + I + G  Where C is consumption  I is…