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?
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?
Homework Answers
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
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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?
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 (S...
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...
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 benefi...
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...
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...
If the federal government was required to balance its budget, when would government spending most likely...
If the federal government was required to balance its budget, when would government spending most likely decrease? Select one: a. When employment was rising rapidly for an extended period of time b. When unemployment was declining for an extended period of time c. When the economy was experiencing a strong expansion due to high business confidence d. When the economy was experiencing a demand pulled inflation e. A balance budget amendments ensures that government spending never decrease Suppose that the...
What is most likely to happen to the price level and real GDP if the Fed...
What is most likely to happen to the price level and real GDP if the Fed targets a lower Federal Funds Rate? Select one: a. Price level and real GDP will both increase b. Price level and real GDP will both decrease c. Price level will increase, but real GDP will decrease d. Price level will decrease, but real GDP will increase e. Real GDP will increase, but the price level would remain the same
What is most likely to happen to the price level and real GDP if the Fed...
What is most likely to happen to the price level and real GDP if the Fed raises the Required Reserves Ratio from 10% to 15%. Select one: a. Price level and real GDP will both increase b. Price level and real GDP will both decrease c. Price level will increase, but real GDP will decrease d. Price level will decrease, but real GDP will increase e. Monetary policies have no effect on the economy
An increase in federal budget deficit only occurs when there is a surplus in the balance...
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.The maintenance of general economic stability relies most heavily on: A. Federal fiscal policy B. Coordinated...
1.The maintenance of general economic stability relies most heavily on: A. Federal fiscal policy B. Coordinated state and local fiscal policies C. Tax and revenue policies of state governments D. Federal aid to the states 2.If we passed a constitutional amendment requiring a balanced budget every year, this would probably A. prevent recessions. B. make our recessions into depressions. C. create inflations. D. raise interest rates. 3.If the President says he will request higher taxes if price increases accelerate, the...
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 is the notion...
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
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