In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
federal budget = government taxes - government revenue
GDP = C+ I+G+ X- M
an increase in taxes to balance the budget will reduce the disposable income of the consumers in the society .Since consumption depends on disposable income directly , people will reduce their consumption so the equilibrium GDP will fall
In an effort to balance the federal budget, an increase in Social Security taxes is passed....
In an effort to balance the federal budget, an increase in Social Security taxes is passed. What is the most likely effect of this on equilibrium GDP?
If the federal government decides to reduce social security benefits to future retirees and increase the contribution (Social Security taxes) on all workers, what will probably happen to the supply of funds available in the capital markets? And what will be the effect on interest rates?
where should they be in balance sheet?
Withholding Taxes Payable-Federal Withholding Taxes Payable-State Social Security and Medicare Taxes Payable FUTA Taxes Payable SUTA Taxes Payable $5,000 $1,300 the $3,826 $150 $1,350
18. If the federal government increases the dollar amount of Social Security benefit checks for the elderly, then a. the consumption schedule will shift upward in the 45-degree line diagram. b. the aggregate demand curve will shift to the right in the aggregate demand aggregate supply curves diagram. c. the effect on the equilibrium real GDP will be the same as a cut in taxes. d. All of the above are correct. 19. The paradox of thrift...
18. If the federal government increases the dollar amount of Social Security benefit checks for the elderly, then a. the consumption schedule will shift upward in the 45-degree line diagram. b. the aggregate demand curve will shift to the right in the aggregate demand aggregate supply curves diagram. c. the effect on the equilibrium real GDP will be the same as a cut in taxes. d. All of the above are correct. 19. The paradox of thrift is the notion...
Who pays the social security taxes that are levied by the federal Insurance contributions Act?
and ________ are the largest sources of revenue collected by the federal government. Corporate income taxes; excise and other taxes Excise and other taxes; individual income taxes Individual income taxes; social insurance taxes Individual income taxes; corporate income taxes The nation of Hyperbole is in a recession, and the government decides to increase taxes and reduce government spending to reduce the growing deficit. This will ________ aggregate demand and will likely ________ real GDP and employment. decrease; decrease decrease; increase...
An increase in federal budget deficit only occurs when there is a surplus in the balance of trade may create inflation decreases aggregate supply decreases aggregate quantity demanded along a stationary curve may reduce the equilibrium level of output and employment
1) Howard company paid salaries of $116,000. All of it was taxable for social security, federal unemployment, state unemployment (3.25%). Income taxes withheld were $45,000. A) Write the payroll journal entry. Hint: This entry will include income tax payable, social security tax payable Medicare tax payable and salaries payable B) Write the payroll tax journal entry. Hint: This entry will incl social security tax payable, Medicare tax payable and salaries payable 2) Howard company paid salaries of $60,000. All of...
The federal Social Security Act A. Does not apply to self-employed persons. B. Excludes professionals such as accountants, lawyers, and doctors. C. Provides for a deduction for Social Security taxes paid by the employee that is available against his or her federal income tax. D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.