Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: Taxes
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Assume that the
government deficit is $200, consumption is $3,800, and the
of:
Taxes
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- Imagine an economy in which Ricardian equivalence holds. This economy has a budget deficit of 50, a trade deficit of 20, private savings of 130, and investment of 100. If the budget deficit rises to 70, how are the other terms in the national saving and investment identity affected?For each of the following, indicate which type of government spending would justify a budget deficit and which would not. Increased federal spending on Medicare Increased spending on education Increased spending on the space program Increased spending on airports and air traffic controlAssume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof: d. National Savingse. Taxesf. Public savings
- Assume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof:a. Private Savingb. Investment c. Government Spendingd. National Savingse. Taxesf. Public savings1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof:a. Private Savingb. Investmentc. Government Spendingd. National Savingse. Taxesf. Public savingsAssume that in 2010, a country had a GDP of $500$500 billion, a budget deficit of $6$6 billion, and a trade deficit of $10$10 billion. In five years, the budget deficit became $4.0$4.0 billion, and the trade deficit as a percentage of GDP changed by 0.70.7 percentage point(s). GDP remained unchanged.Calculate the dollar value of the trade deficit in 2015.
- Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: (i) Private Saving (ii) Investment (iii) Government Spending (iv) National Savings (v) Taxes (vi) Public savings. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: a. Private Saving b. Investment c. Government Spending d. National Savings e. Taxes f. Public savingsIf consumption is $300 billion, investment is $100 billion, government purchases are $200 billion, exports are $200 billion, and imports are $100 billion, calculate GDP. (Just leave the numbers in billions.)8. In the previous problem, is the country running a trade deficit or surplus?
- If US is expected to have 12 billion dollars more export and 8 billion dollars less import. How will the trade deficit change?To eliminate the deficit (and halt the growth of the net public debt), a politician suggests that “we should tax the rich.” The politician makes a simple arithmetic calculation in which he applies a higher tax rate to the total income reported by “the rich” in a previous year. He says that the government could thereby solve the deficit problem by taxing “the rich.” What is the major fallacy in such a claim?Assume the gross domestic product is $6,000 personal disposal income is $5,100, the government deficit is $200, consumption is $3,800 and the trade deficit is $100. What is the size of: Private savings Investment Government spending National savings Taxes Public savings
