The government budget balance is the... Difference between government outlays and tax revenues Change in the...
The government budget balance is the...
Difference between government outlays and tax revenues
Change in the government debt that results from changes in fiscal policy
The budget balance that arises because Real GDP differs from Potential GDP
The budget balance that occurs when the economy is at full employment
Homework Answers
The government budget balance also referred to as general government balance, public budget or fiscal balance and the overall difference between government revenues and spending. Therefore, Option A is correct.
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The government budget balance is the...
Difference between government outlays and tax revenues
Change in the...
4. Evaluating fiscal policy Aa Aa The graph below shows an economy's government expenditures (G) ...
4. Evaluating fiscal policy Aa Aa The graph below shows an economy's government expenditures (G) and tax revenues (T) at different levels of real GDP G AND T Billions of dollars) 280 T 2008 270 260 250 240 230 220 210 200 600 640 680 720 760 REAL 00P (Bitions of dollars) Hee Clear AL Suppose the economy's full-employment level of real GDP is $680 billion. In 2006, the economy was operating at its full-employment output level, so the standardized...
The graph shows an economy below full employment. To restore full employment, the government incr...
The graph shows an economy below full employment. To restore full employment, the government increases government expenditure by $0.5 trillion. Draw a curve to show the effect of the increase if it is the only change in spending plans. Label the curve ADo AE Price level (GDP price index, 2009-100) Potential GDP The increase in government expenditure sets off a multiplier process. Draw a curve that shows the multiplier effect that returns the economy to full employment. Label it AD,...
Government outlays consist of Question 6 options: all governmental purchases resulting from contracts with the private...
Government outlays consist of Question 6 options: all governmental purchases resulting from contracts with the private sector and foreign organizations government purchases, transfer payments, and interest on the national debt government purchases and transfer payments minus the interest on the national debt total receipts from all organizations doing business with any level of government Question 7 (1 point) If tax revenue is $400 billion and outlays are $600 billion, then Question 7 options: there is a budget surplus of $200...
The graph shows an economy that is above full employment. To restore full employment, the government...
The graph shows an economy that is above full employment. To restore full employment, the government decreases government expenditure by $0.5 trillion. Draw a curve to show the effect of the decrease if this is the only change in spending plans. Label the curve AD0-ΔE The decrease in government expenditure sets off a multiplier process. Draw a curve that shows the multiplier effect that returns the economy to full employment. Label it AD Draw a point at the full-employment equilibrium...
1- If tax revenue is $400 billion and outlays are $600 billion, then a- there...
1- If tax revenue is $400 billion and outlays are $600 billion, then a- there is a budget surplus of $200 billion b- there is a budget surplus of $1000 billion c- there is a budget deficit of $200 billion d- there is a budget deficit of $1000 billion 2- If equilibrium RGDP is $10000 billion and full employment GDP is $9000 billion, and the MPC = 0.75, what is the appropriate fiscal policy to return...
5. Automatic adjustments to the government budget The following table provides some information on government expenditures (G) and tax revenues (T) at different levels of real GDP in a hypothetic...
5. Automatic adjustments to the government budget The following table provides some information on government expenditures (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Throughout this problem you should assume that government transfers (TR) are zero. Real GDP (Billions of dollars) 460 Government Expenditures (G) (Billions of dollars) 72 72 72 Tax Revenues (T) (Billions of dollars) 70 72 74 540 Use the blue line (circle symbols) to plot the government expenditures schedule...
Problem 4.1 Question Help The new bridge to the United States in Southern Ontario and similar...
Problem 4.1 Question Help The new bridge to the United States in Southern Ontario and similar construction projects elsewhere in the country would be expected to help the economy in the short run, because O A. the use of discretionary fiscal policy would create an one time increase in real GDP but result in a job-less recovery. O B. the use of discretionary fiscal policy would create an one time increase in real GDP and employment. O C. the use...
Course: Topic: BUSI2003 Macroeconomics Fiscal Policy (billions of CS) Government Tax Government Surplus or National Revenues...
Course: Topic: BUSI2003 Macroeconomics Fiscal Policy (billions of CS) Government Tax Government Surplus or National Revenues Expenditure Deficit Debt 100 2007 2008 2009 2010 2011 2012 604 647 633 612 610 615 578 610 631 645 650 648 1. Why did the tax revenues decline from 2008 to 20117 2. If the economy experienced a severe recession from 2008, why didn't the Government expenditure decrease in those years? 3. How did the Government's budget balance evolve over time? 4. How...
Macroecomics multiple choice a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = t...
Macroecomics multiple
choice
a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = tọY to NT = t,Y we would expect: an upward shift of the aggregate expenditure curve an increase in the slope the aggregate expenditure curve. a movement down and along the aggregate expenditure curve. O a decrease in the slope of the aggregate expenditure curve b) In an open economy with imports described by the import function: IM 0.25Y and...
12. The progressive income tax and transfer payments are the two main: A) automatic stabilizers. B)...
12. The progressive income tax and transfer payments are the two main: A) automatic stabilizers. B) monetary policy tools. C) long-run aggregate supply management tools. D) tools for balancing the budget. 13. Automatic stabilizers include all of the following EXCEPT: A) unemployment compensation benefits. B) welfare payments. C) national defense spending. D) tax revenues. 14. The implementation lag is: A) usually less than 12 months. B) the time it takes policymakers to recognize a problem. C) the time it takes...
4. Evaluating fiscal policy Aa Aa The graph below shows an economy's government expenditures (G) and tax revenues (T) at different levels of real GDP G AND T Billions of dollars) 280 T 2008 270 260 250 240 230 220 210 200 600 640 680 720 760 REAL 00P (Bitions of dollars) Hee Clear AL Suppose the economy's full-employment level of real GDP is $680 billion. In 2006, the economy was operating at its full-employment output level, so the standardized...
The graph shows an economy below full employment. To restore full employment, the government increases government expenditure by $0.5 trillion. Draw a curve to show the effect of the increase if it is the only change in spending plans. Label the curve ADo AE Price level (GDP price index, 2009-100) Potential GDP The increase in government expenditure sets off a multiplier process. Draw a curve that shows the multiplier effect that returns the economy to full employment. Label it AD,...
The graph shows an economy that is above full employment. To restore full employment, the government decreases government expenditure by $0.5 trillion. Draw a curve to show the effect of the decrease if this is the only change in spending plans. Label the curve AD0-ΔE The decrease in government expenditure sets off a multiplier process. Draw a curve that shows the multiplier effect that returns the economy to full employment. Label it AD Draw a point at the full-employment equilibrium...
5. Automatic adjustments to the government budget The following table provides some information on government expenditures (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Throughout this problem you should assume that government transfers (TR) are zero. Real GDP (Billions of dollars) 460 Government Expenditures (G) (Billions of dollars) 72 72 72 Tax Revenues (T) (Billions of dollars) 70 72 74 540 Use the blue line (circle symbols) to plot the government expenditures schedule...
Problem 4.1 Question Help The new bridge to the United States in Southern Ontario and similar construction projects elsewhere in the country would be expected to help the economy in the short run, because O A. the use of discretionary fiscal policy would create an one time increase in real GDP but result in a job-less recovery. O B. the use of discretionary fiscal policy would create an one time increase in real GDP and employment. O C. the use...
Course: Topic: BUSI2003 Macroeconomics Fiscal Policy (billions of CS) Government Tax Government Surplus or National Revenues Expenditure Deficit Debt 100 2007 2008 2009 2010 2011 2012 604 647 633 612 610 615 578 610 631 645 650 648 1. Why did the tax revenues decline from 2008 to 20117 2. If the economy experienced a severe recession from 2008, why didn't the Government expenditure decrease in those years? 3. How did the Government's budget balance evolve over time? 4. How...
Macroecomics multiple
choice
a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = tọY to NT = t,Y we would expect: an upward shift of the aggregate expenditure curve an increase in the slope the aggregate expenditure curve. a movement down and along the aggregate expenditure curve. O a decrease in the slope of the aggregate expenditure curve b) In an open economy with imports described by the import function: IM 0.25Y and...
12. The progressive income tax and transfer payments are the two main: A) automatic stabilizers. B) monetary policy tools. C) long-run aggregate supply management tools. D) tools for balancing the budget. 13. Automatic stabilizers include all of the following EXCEPT: A) unemployment compensation benefits. B) welfare payments. C) national defense spending. D) tax revenues. 14. The implementation lag is: A) usually less than 12 months. B) the time it takes policymakers to recognize a problem. C) the time it takes...
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