Pictures not excepted...Otherwise I will give a dislike The Figure below shows the outlays and revenues for the government of Pianoland.Outlays, Revenues and budget balance(billions of 2012 dollars)190180170160150140130120110100RevenuesOutlays450 500 550 600 650 700 750 800 850 900Real GDP (billions of 2012 dollars)If potential GDP equals $550 billion and real GDP equals $775 billion the economy has a structuralHHD billion.KUD of $billion and a cyclicalof $

A country's goods and services produced within its territory are referred to as gross domestic…

The Figure below shows the outlays and revenues for the government of Pianoland. Outleys, Revenues and budget balance (billions of 2012 dollars) 190 180 170 160 150 140 130 120 110 100 Revenues Outlays 0 450 500 550 600 650 700 750 800 850 900 Real GDP (billions of 2012 dollars) If potential GDP equals $550 billion and real GDP equals $775 billion the economy has a structural of $ billion and a cyclical of $ AND billion.

The Figure below shows the outlays and revenues for the government of Pianoland. Outleys, Revenues and budget balance (billions of 2012 dollars) 190 180 170 160 150 140 130 120 110 100 Revenues Outlays 0 450 500 550 600 650 700 750 800 850 900 Real GDP (billions of 2012 dollars) If potential GDP equals $550 billion and real GDP equals $775 billion the economy has a structural of $ billion and a cyclical of $ AND billion.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 30RQ: Under what general macroeconomic circumstances might a government use expansionary fiscal policy?...

See similar textbooks

Similar questions

Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
What are some fiscal policies for improving the technologies that the economy will have to draw upon in the future?
Which of the following are used in fiscal policy?A. government purchases, transfer payments and taxesB. taxes and government purchasesC. transfer payments onlyD. taxes and transfer paymentsE. government purchases only
The table below shows hypothectical figures of revenue and spending for the Canadian government. For simplicity, assume that all of the spending grants to other levels of government were spent in Canada on goods and services. Federal Government's Budget Plan for Fiscal Year ($billion) REVENUES OUTLAYS Personal income taxes $100 Transfers to persons $46 Corporate income taxes 34 Spending grants to other levels of government 38 Other income taxes 7 Public debt charges 35 GST and excise taxes 47 Direct program spending 95 EI premiums 14 Total Outlays 214 Other revenues 18 Projected Budget Plan Surplus 6 Total Revenues 220 a. The projected NTR in this budget plan is $ billion. b. The value of NTR less government spending on goods and services (G) is $ billion. Round your answers to 1 decimal place. c. The percentage of total revenue made up by personal income taxes is %. d. The percentage of total revenue…
A timely topic considering the impact of the pandemic crisis. Government at all levels must submit budgets; most are required to submit balanced budgets where revenues cover anticipated expenses. But, estimating government revenues can be as difficult or even more difficult than estimating company revenue. Why is it important that government budgets accurately estimate future revenues during economic downturns?
Government spending on health care has been A) shrinking as a share of government spending. B) rising as a share of government spending. C) rising and falling from year to year as various illnesses hit the population.D) falling then rising as a share of government spending. E) steady as a share of government spending. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Q.3.1 Government spending (as a percentage of gross domestic expenditure) hasincreased significantly over the past decades. Explain any two reasons for thistrend.Q.3.2 The increased government spending noted in Q.3.1. above has to be financed inone way or another.Describe three ways in which government spending can be financed.
Fiscal policies are concerned with the revenues, expenditures and borrowings asinstruments in economic development. Discuss the interplay of these fiscalinstruments and the problem involved in each. How can the governmentovercome such problem?
What is the distinction between government purchases and transfer payments? What is the relative importance of these two types of expenditures in total government expenditures expressed as a per cent of GDP? Why are some government purchases necessary to administer transfer payments by the government?
MULTIPLE CHOICE QUESTIONS1. Which of the following is a category of fiscal policy?A) government policies regarding transfer payments and welfare benefitsB) government policies regarding the purchase of goods and servicesC) government policies regarding taxationD) all of the above2. Which of the following is CORRECT regarding tax revenues?A) they do not change with changes in the tax rateB) they increase during recessionsC) they are the only revenue source in the government's budgetD) they decrease during economic slowdowns3. Disposable incomeA) decreases when income decreases.B) decreases when net taxes decrease.C) increases when saving decreases.D) all of the above4. Planned aggregate expenditure increases when ________ in the income-expenditure model.A) the government sector is excludedB) consumption is excludedC) the government sector is includedD) investment is excluded5. If output is greater than planned aggregate expenditure, there will beA) no change in inventories.B) a planned…
Create three diagrams for the aggregate expenditures (AE) model for a public closed economy by adding different taxes. For the Diagram #1 suppose: Autonomous Expenditures: $6000; MPC: 0.75 Taxes: $1500;Potential Output: $16500For the Diagram #2 suppose: Autonomous Expenditures: $ 6000; MPC: 0.75;Taxes: $3000;Potential Output: $16500For the Diagram #3 suppose: Autonomous Expenditures: $6000; MPC: 0.75; Taxes: $2500Potential Output: $16500Explain each diagram by determining economic gaps and/or equilibriums. How does an increase in taxes affect GDP? How does a decrease in taxes affect GDP?
Equal increases in government spending andtaxes willa. cancel each other out so that the equilibriumlevel of real GDP remains unchanged.b. lead to an equal decrease in the equilibriumlevel of real GDP.c. lead to an equal increase in the equilibriumlevel of real GDP.d. lead to an increase in the equilibrium levelof real GDP output that is larger than theinitial change in government spendingand taxes.