Government spending in Robok is $90 billion, and its only tax is an income tax with a marginal tax rate of 0.15. a. The balance on the government's budget at a GDP level of $380 billion is a (Click to select) v of $ billion. b. The balance on the government's budget at a GDP level of $700 billion is a (Click to select) v of $ billion. c. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ billion.
Government spending in Robok is $90 billion, and its only tax is an income tax with a marginal tax rate of 0.15. a. The balance on the government's budget at a GDP level of $380 billion is a (Click to select) v of $ billion. b. The balance on the government's budget at a GDP level of $700 billion is a (Click to select) v of $ billion. c. At what level of GDP will the economy of Robok have a balanced budget? Robok will have a balanced budget at a GDP level of $ billion.
Survey of Economics (MindTap Course List)
9th Edition
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Irvin B. Tucker
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 19SQ
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Transcribed Image Text:Government spending in Robok is $90 billion, and its only tax is an income tax with a marginal tax rate of 0.15.
a. The balance on the government's budget at a GDP level of $380 billion is a (Click to select) v of $
billion.
b. The balance on the government's budget at a GDP level of $700 billion is a (Click to select) v of $
billion.
C. At what level of GDP will the economy of Robok have a balanced budget?
Robok will have a balanced budget at a GDP level of $
billion.
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