9. Given the following information: Natural real GDP = 11000 Actual real GDP = 10000 Tax rate (t) = 10% Government Expenditure (G) = 1200 Find: %3D %3D 1. The amount of taxes at natural and actual real GDP. 2. Natural employment deficit (NED). 3. Actual deficit. 4. The cyclical deficit. 5. Suppose that fiscal policy is used to increase actual real GDP to natural real GDP through tax cut from 10% to 8%. Compute the new natural employment deficit (NED).

9. Given the following information: Natural real GDP = 11000 Actual real GDP = 10000 Tax rate (t) = 10% Government Expenditure (G) = 1200 Find: %3D %3D 1. The amount of taxes at natural and actual real GDP. 2. Natural employment deficit (NED). 3. Actual deficit. 4. The cyclical deficit. 5. Suppose that fiscal policy is used to increase actual real GDP to natural real GDP through tax cut from 10% to 8%. Compute the new natural employment deficit (NED).

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 53P: Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in...

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