4. Based on the answer to the previous question (question #3), if half of those government expenditures are financed through lump sum taxes, calculate the new level if NI? (C+I+G)
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PLEASE ONLY ANSWER QUESTION FOUR (i am giving you the others as context) (i need this by 11:55pm tonight, so in like 25 minutes, so please hurry!!)
ANSWER THIS ONE:
4. Based on the answer to the previous question (question #3), if half of those government expenditures are financed through lump sum taxes, calculate the new level if NI? (C+I+G)
HERE ARE THE FIRST THREE QUESTIONS AS CONTEXT:
1. Calculate the MPC in the above diagram.
2. Based on Diagram 1, If private Investment of $100 is added to the existing C, calculate the new equilibrium level of NI.
3. Given your answer to the previous question (question #2) calculate by how much G should change, if the full employment level in the economy is at $3000.
4) The government expenditure should be increased by 75. Half of this is financed by taxes. The taxes are 37.5. Remaining government expenditure is 37.5
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- Answer the following questions on fiscal policy: (a) According to data from the Office of National Statistics, in January 2022 the UK public sector spent less than it received in taxes resulting in a primary surplus. Considering that the UK government was previously running a deficit, and assuming that UK GDP growth is higher than the real interest rate paid on the debt, use a phase line to show how the surplus may affect debt accumulation in the UK. (100 words excluding the graph) (b) In the Financial Times article “UK public finances vulnerable to higher inflation, says Sunak” (2 March 2022), we read: “Rishi Sunak[*] warned that the UK economy and public finances were “vulnerable” to higher inflation and interest rates in comments ahead of the spring statement suggesting that tough decisions could be required in the months ahead.” “The [Treasury] committee expressed concern that the government had contributed to the UK’s high rate of inflation which hit by 5.5 per cent in January…Some liken quantitative easing to that of directing a firehose of money to emerging economies that cannot manage the cash, while others worry that the flood of cash has encourages reckless financial behavior. What specific types of "reckless" financial behavior comes from quantitative easing and by whom? Which measure will reduce employment best: government tax reduction, or increased government spending? Can you compare the multiplier effect of a tax reduction versus the multiplier effect of an increase in government spending? There are TWO formulas. Which of the two will have a bigger impact in the economy and why based on the two formulas? Using the formulas, figure this out: If $30 billion in new investment is added to the economy and MPC is 0.9, how much would the national income (GDP) increase by?A short-run AS/AD economy has an AS/AD spending multiplier of 2.0 and an income tax rate of t = 0.3. A budget deficit of 60 dollars can be eliminated if government spending is reduced by ________ dollars. Round your final answer to two decimal places.
- Asap Suppose that Shen, an economist from a research facility in Washington, and Valerie, another economist from an investigative reporting group, are both guests on a popular science podcast. The host of the podcast is facilitating their, debate over budget deficits. The following dialogue represents a portion of the transcript of their discussion: Valerie: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course. of action to remedy this situation. Shen: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits Valerie: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economists chosen at random most likely to agree? Business managers can raise profit more easily by…Crowding out occurs when Question 25 options: increased money supply causes private expenditures to fall increased consumption causes private expenditures to fall increased government expenditures causes private expenditures to fall increased taxes causes private expenditures to fallHow do the instances when expansionary fiscal policy should be used compare with those for contractionary fiscal policy? Expansionary fiscal policy should be used during recessions to help build the economy and contractionary fiscal policy should be used when there is high inflation. Expansionary fiscal policy should be used to increase government revenue and contractionary fiscal policy should be used to increase consumer spending. Expansionary fiscal policy should be used to combat high inflation and contractionary fiscal policy should be used to increase government revenue. Expansionary fiscal policy should be used to decrease the unemployment rate and contractionary fiscal policy should be used when economic growth is too fast.
- Suppose that Shen, an economist from a research facility in Washington, and Valerie, another economist from an investigative reporting group, are both guests on a popular science podcast. The host of the podcast is facilitating their, debate over budget deficits. The following dialogue represents a portion of the transcript of their discussion: Valerie: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course. of action to remedy this situation. Shen: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits Valerie: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively. The disagreement between these economists is most likely due to Despite their differences, with which proposition are two economists chosen at random most likely to agree? Business managers can raise profit more easily by reducing…Is is possible for federal investment to have a negative rate of return? Yes, if the spending results in a strong crowding-out effect or if state and local governments substitute towards federal investment by reducing stateand local investment. Either would potentially reduce future productivity and output (GDP), resulting in a negative return. Yes, if the spending results in a weak crowding-out effect or if state and local investments complement the increase in federal investment by. Either would potentially reduce future productivity and output (GDP) and hence result in a negative return. No. At worst, federal investment can have no future return as the expenditure offered some form of service (ex. jobs training) or useful infrastructure (ex. highways). No. If in the future there were a negative return, the federal government would increase expenditures again to offset it.Can you solve just the last three subparts of the question? (Solve for equilibrium levels of Y, C, and S after the tax cut and check to ensure that the multiplier worked. What arguments are likely to be used in support of such a tax cut? What arguments might be used to oppose such a tax cut?) You guys are the best! <3
