Fiscal Policy - Ask FREDThe accompanying graph depicts theunemployment insurance benefits paid bythe U.S. government.ALFREDil Personal current transfer receipts: Government social benefits tpersons: Unemploymentinsurance Vintage: 2018-01-291801601401201002 86040202005201020151975Source: U.S. Bureau of Economic Analysisb. What was the average amount spent on unemployment insurance in 2007, before the recession began?Enter your answer in billions of dollarsbillionHow does the 2007 amount compare to the maximumammount?The amount spent in January of 2010 is about2007 levels.

The graph reveals that the spending of average unemployment insurance in 2007 is nearly $30 billion.

Answered: Fiscal Policy - Ask FRED The…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 23CTQ: Given the federal budget deficit in recent years, some economists have argued mat by adjusting...

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Similar questions

Given the federal budget deficit in recent years, some economists have argued mat by adjusting Social Security payments for inflation using me CPI, Social Security is warming recipients. What is their argument, and do you agree or disagree with it?
Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or to payroll taxes. Suppose that a particular worker is subject to a payroll tax of 7.65% of her wages; that she pays an average income tax rate of 10%; and that after losing her job, she is eligible to receive 60% of her previous weekly income. (Show Work) (a) What fraction of her take-home paycheck will she receive from unemployment insurance? (b) What effect does the tax treatment of unemployment insurance benefits have on the ability it provides its recipients for smoothing? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
What are problems that governments may encounter in enacting and applying fiscal policy? Explain the effectiveness of the recent U.S. fiscal policy. (Please note that this is a an old source however it is the source my teacher wants me to use. https://www.clevelandfed.org/newsroom-and-events/publications/economic-trends/2015-economic-trends/et-20150714-us-fiscal-policy-recent-trends-in-historical-context.aspx )
Please no written by hand and no image in 2017 the mortgage interest deduction became even more regressive than in thepast. Regressive, in this context, means that it benefits the wealthy significantlymore than those lower on the income scale. The reason is simple: Mortgage interestis a function of the size of the mortgage. Since the wealthy tend to buy moreexpensive homes, their mortgages are larger and their tax benefits larger. Does thatmatter to your opinion of the subsidy?
1)Plot the following markets on a graph: Labor market: using 5 laborers and $5.00 for wage as point A (equilibrium). AD/AS graph: using 19.1 trillion for RGDP and 1.9% for inflation as point A (equilibrium). How will our AD/AS graph look like when Congress implements an income tax hike in the labor market?
Assuming a tax rate of 40 percent, compute thebefore-tax real interest rate and the after-tax realinterest rate for each of the following cases.a. The nominal interest rate is 10 percent, and theinflation rate is 5 percent.b. The nominal interest rate is 6 percent, and theinflation rate is 2 percent.c. The nominal interest rate is 4 percent, and theinflation rate is 1 percent.
(A). Explain the concepts of excess sensitivity and excess smoothness that arises from the empirical literature on the permanent income hypothesis? What could explain these findings?
1. What happens to the following variables during an expansion?a. unemployment compensationb. welfare paymentsc. income tax receiptsd. government budget deficits (surplus)
Labor Market Y = α (5N – 0.0025N2), where α = 2; N = labor The supply of labor, NS isNS = 55 + 10(1-t)w where t- tax rate = 0.5, w = real wage rate Good Market The desired consumption, Cd is Cd = 300 + 0.8(Y – T) – 200rWhere Y = income, T = taxes, r = real interest rate T= 20 + 0.5YG= 50Desired investment, Id:Id = 258.5 – 250r Money Market Demand for money, Md/P: Md/P = 0.5Y – 250(r + πe), where πe = 0.02 (expected inflation) Money supply = Ms = 9150 a)Find the equilibrium w, Y and N.b)Find the IS-curve and the equilibrium r, C and I.c)Find the LM-curve and the equilibrium P.d)If G increased to 72.5, find the equilibrium w, P, N, r, C and I.e)Discuss the differences between the equilibrium values in d) with a), b) and c). What is your conclusion with regard to the effectiveness of fiscal policy in this model?
1) Plot the following markets on a graph: Government market: using 50 jets for Q and $5 billion for P as point A (equilibrium). AD/AS graph: using 19.1 trillion for RGDP and 1.9% for inflation as point A (equilibrium). How will our AD/AS graph look like when U.S. government buys less jets in the government market? 2) Plot the following markets on a graph: Labor market: using 5 laborers and $5.00 for wage as point A (equilibrium). AD/AS graph: using 19.1 trillion for RGDP and 1.9% for inflation as point A (equilibrium). How will our AD/AS graph look like when Congress implements an income tax hike in the labor market?
Please help. Can you draw a model or IS-LM (income spending money demand and supply model) describing the unemployment in an economy.
WACC=(VE×Re)+(V/D×Rd×(1−Tc))where:E=Market value of the firm’s equityD=Market value of the firm’s debtV=E+DRe=Cost of equityRd=Cost of debtTc=Corporate tax rate WHY IS THE RD MISSING? THE Answer should be 10%?WACC = 1/3*16% + (2/3 * 10% * 0.7) = 10%?

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