If the government got rid of sales tax, how might this affect the market? shift AD to the right shift SRAS to the right shift AD to the left shift SRAS to the left

Q: Y= C+I+G Where C = 160 +0.6Yp I = 150 G = 150 T= 100

A: When the policymakers compute the real GDP by expenditure methods, they include consumption,…

Q: United States, the various state governments almost all have laws that require them to balance their…

A: Expansionary fiscal policy is utilized to launch the economy during a recession. It supports total…

Q: The graph shows the market for chocolate bars. Draw a point at the equilibrium quantity and…

A: Given, Equilibrium without tax, Demand = Supply Price = $3 Quantity = 6

Q: The government started imposing a Digital Services Tax (DST) of six per cent on 1 January 2020 on…

A: Demand is the absolute quantity of goods and services that a consumer is willing to buy at different…

Q: Governments tend to like to tax goods with inelastic demands. Why

A: Answer to the question is as follows:

Q: Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive.…

A: The tax is a unilateral payment made by the people towards the government for various purposes such…

Q: Classical economists recommend the following: O strong unions minimum wage legislation O balancing…

A: The answer is - minimum wage legislation.

Q: What is the condition of tax incidence in the Philippines, who carries the burden more? Give…

A: The distribution of a tax's economic burden among the affected parties is known as tax incidence. It…

Q: What is the effect of government purchased and taxation on the level of income?

A: KEYS- There are two ways the government can influence fiscal policy: by raising taxes or by cutting…

Q: What are the short-run and long-run implications when it comes to government spending changes versus…

A: Government Spending is defined as the money that is spent by the government or the public sector of…

Q: In Virginia, in 2019, if you made $10,000 a year in income, you paid $120 + 5% of excess over…

A: A tax is a necessary fee or a type of monetary charge that is imposed by a government on a person or…

Q: C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550     Calculate the…

A: Tax revenue is the percentage of the GDP (Y) which tells about that share, that is collected by the…

Q: Can you explain how to figure this out? The demand curve moved to the left Showing what the demand…

A: Initially when there were no taxes involved, the equilibrium price which the buyer paid and the…

Q: What do you think would happen if there were no taxes and you could spend all your money on capital…

A: Taxes are one of the major sources of revenue for the government. In case, there are no taxes and…

Q: With a tax on demand (if demand is downward-sloping as it usually is) , the price that buyers pay…

A: A downward sloping demand curve indicate an inverse relationship between price and quantity, that…

Q: In each case, state the direction of the change and give a formula for the size of the impact. a. An…

A: [a] Moving according to the Keynesian cross model, there is AD and AS play an important role. Due to…

Q: Illustrate each of the following situations with a graph showing IS curve: a. An increase in…

A: The IS curve slopes downward from left to right because as the interest rates falls, investment…

Q: Over the past century, has the government’s tax revenuegrown more or less slowly than the rest of…

A: Meaning of TAX: A tax is charged by the government compulsorily on an individual or legal entity.…

Q: What might be the consequences If congress were to cut individual income tax rates in half ?

A: Tax cut proponents argue that lowering taxes boosts spending, which helps the economy. Those who…

Q: Along any given IS curve: a. government spending is fixed, but tax rates vary. b. tax rates are…

A: IS-LM stands for "investment savings-liquidity preference-money supply," or "investment…

Q: What is the market failure that justifies goverment involvement in the economy

A: Governments intervene in markets to deal with inefficiency. In an optimally efficient market,…

Q: When President Obama was elected, the U.S. economy had slid into a recession. Consumer spending was…

A: The most essential standard of Keynesian theory of economics is that if an economy's investment(I)…

Q: Which economic policies affect a government's budget and include the increase or decrease the money…

A: Economic policies are policies or course of action taken by the government in the field of…

Q: what will happen to the equilibrium of mobile phones of government announces higher sales taxes on…

A: Imposition of sales tax results in leftward shift of the supply curve.

Q: Consumer saves 15% of additional income, spends 65% of income on goods and services and spends 20%…

A: The tax multiplier can be calculated by using the following formula.

Q: There once was a town where thanks to expansive fiscal policy in Washington, the town had more money…

A: In this question:- Due to expansive fiscal policy in Washington, the town had more money to fix…

Q: Illustrate each of the following situations with a graph showing IS curve: a. An increase in taxes

A: Tax is a unilateral payment made from the public to the government for many purposes such as for the…

Q: What is fiscal​ imbalance? Fiscal imbalance is the​ _______ value of the​ government's commitments…

A: What is the fiscal​ imbalance? Fiscal imbalance refers to a situation where all of the government's…

Q: What is the best policy to implement with regard to taxes?

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: According to the pie chart, which of the following provides the most revenue for the federal…

A: As per the pie chart above, the federal tax revenue is $3.18 trillion and is collected/earned…

Q: What happens to the tax revenue when the tax on a good increase gradually? (a) Will rise (b) Will…

A: Tax Revenue:- Earnings received through profit and revenue taxation, benefit payments, taxes on…

Q: If prices are constant economic incidence would be the more than legislative (statutory) incidence.…

A: If prices are constant economic incidence would be the more than legislative (statutory) incidence.…

Q: Most economists have reached the following conclusion about supply-side economics. a. None of…

A: Supply means amount of goods and services available for consumers.

Q: Income Tax rates will be changed to the following Marginal Tax Rates given by: T(I) = 40*I2/ I2+1000…

A: Marginal tax rate refers to the tax rate that imposed on the last dollar of income.

Q: Which of the following is a general sustain downward moment of prices for goods and service in an…

A: As per you mention two questions above the picture, we are solving these two questions only

Q: An economy is described by the following equations: C=150+0.5 YD I=150 G=200 T=? What is the value…

A: Aggregate expenditure (AE) in closed economy is the sum of consumption, investment, and government…

Q: Suppose C= 100 + .8 (Y - T). If the government reduces lump sum taxes by $20, which statement is NOT…

A: The IS LM graph examines the relationship between output (GDP) and interest rates.

Q: On average, does an increase in taxes raise or lower real GDP? If taxes as a percent of GDP go up 1…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…

Q: Which of the following BEST shows fiscal policy? A The Federal Reserve buys bonds. The United States…

A: Here federal reserve open market buy operations, printing more money or increasing supply of money…

Q: Imagine that a group of advisors to the president has suggested providing a tax cut for the middle…

A: Solution part (1).   Suggested approach of providing a tax cut for middile class in order to…

Q: Do all these taxes and licenses reduce our disposable income?     Why do we sacrifice and pay…

A: Disposable Income: The amount of money that an individual spends on consumption and savings after…

Q: How does tax affect AE line? Draw graphs to explain

A: Aggregate expenditure is composed of consumption spending, investment spending, government purchases…