C = 450 + 0.4Y |- 350 G = 150 X= 70 Z= 35 + 0.1Y T= 0.15Y Yf = 1550 Q.2.4 Calculate the tax revenue to the government of this country when the economy remains in equilibrium. Q.2.5 Calculate what the new equilibrium income should be if the government of this country decides to cancel all taxes, implying the tax rate would now be 0%. Q.2.6 Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
C = 450 + 0.4Y |- 350 G = 150 X= 70 Z= 35 + 0.1Y T= 0.15Y Yf = 1550 Q.2.4 Calculate the tax revenue to the government of this country when the economy remains in equilibrium. Q.2.5 Calculate what the new equilibrium income should be if the government of this country decides to cancel all taxes, implying the tax rate would now be 0%. Q.2.6 Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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Transcribed Image Text:C = 450 + 0.4Y
| = 350
G = 150
X = 70
z = 35 + 0.1Y
T= 0.15Y
Yf = 1550
Q.2.4
Calculate the tax revenue to the government of this country when the economy
remains in equilibrium.
Q.2.5
Calculate what the new equilibrium income should be if the government of this
country decides to cancel all taxes, implying the tax rate would now be 0%.
Q.2.6
Before the government decreased the tax rate, how much of government
spending was required to bring the economy to full employment?
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