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- 16- Which one of these will be deducted from gross output to determine the net output? a. Intermediate consumption b. Private income c. Factor income from abroad d. Total government spending7- The__________refers to the sum of all current incomes received by the individuals or households from all sources within the domestic territory of a country during an accounting year. a. National income b. Private income c. Personal income d. Passive income8- A person’s disposable income decreases, and his personal income remains unchanged. This is because of ______. a. Decreased personal taxes b. Increased personal taxes c. Increased corporate taxes d. Unemployment reasons
- 13 Which national income estimation method needs information such as indirect taxes, depreciation and intermediate consumption? a. Net output b. Income c. Expenditure d. Factor10) Suppose net taxes are $50 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. What is national savings? A) 50 billion B) -50 billion C) 75 billion D) -75 billion.8. Referring to Fig 4b and the attached table, what is remarkable about the shares of federal individual income taxes paid by the bottom 40% of households by income, since 2002? a) The share of federal individual income taxes paid by the bottom 40% have not changed much. b) The share of federal individual income taxes paid by the bottom 40% have been increasing. c) The share of federal individual income taxes paid by the bottom 40% have been decreasing. d) The share of federal individual income taxes paid by the bottom 40% have turned negative. 9. Referring to Fig 4b, the attached table, and your answers to questions 7 and 8 above, is it reasonable to infer that income tax rate cuts tend to increase the share of taxes paid by top income taxpayers? YES NO 10. in 1979, the share of federal individual income taxes paid by the bottom 80% of taxpayers by income is ______%. 11. In 2007, the share of federal individual…
- 18. What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16 e) 81. Suppose that the U.S. government increases its expenditure on highways and bridges by $100 billion. Explain the effect that this expenditure would have on aggregate demand and real GDP.5- Which of these is true about GDP and equality? a. Equality is guaranteed in countries with high GDP b. Lower GDP means more inequality c. There is no clear relationship between GDP and equality d. Higher GDP means more inequality
- 1. This expenditure (formerly general government consumption) includes all current government expenditures for purchases of goods and services (including an employee). a. Capital expenditure b. Consumption c. Utilization d. Transfer payments19 - How does the increase in total expenditures affect the equilibrium income level?A) remains constantB) IncreasesC) first increase and then decreaseD) DecreasesE) Decrease first, then increase.1 a)What is the value added definition of GDP? What is meant by value added? b) Suppose that in a given year, a company spends € 400 million on intermediate goods, €800 million on wages of employees with no other expenses and makes total sales worth of € 1600 million. What is the value added of this company? c) The government wants to increase absolute savings and successfully incentivizes the people to save more (saving rate goes up). Show is a graph, what happens to equilibrium output. How could increase in savings lead to a paradox. 2.) a) What are the elements within autonomous spending? State the formula for the multiplier b)In the graph below, draw the demand function (Z) including autonomous expenditure. Label the area representing autonomous spending. Add the value of equilibrium output that you calculated in part c. ( images) c)Suppose the following characteristics of an economy: C = 150 + 0.4 YD , I = 270, G = 100, T = 50 Calculate the equilibrium output and mark it…