The level of equilibrium income, Y, = $_____(Enter response rounded two decimal places) The government collects net taxes of $_____ Remember the budget surplus is equal to taxes minus government spending, The governments budget surplus is $____
The level of equilibrium income, Y, = $_____(Enter response rounded two decimal places) The government collects net taxes of $_____ Remember the budget surplus is equal to taxes minus government spending, The governments budget surplus is $____
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 3QP
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Question
V1
Consider the following information for a country:
Consumption function: C = 85+0.8Yd
Investment function: l = 85
Government spending: G=60
Net taxes: T = -40+0.25Y
Disposable Income: Yd = Y - T
Equilibrium: Y = C + l + G
The level of equilibrium income, Y, = $_____(Enter response rounded two decimal places)
The government collects net taxes of $_____
Remember the budget surplus is equal to taxes minus government spending,
The governments budget surplus is $____
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