Use the following table to answer the next eight questions, where GDP = gross domestic product. Public Debt over Time 2001 2011 Debt GDP Debt GDP $0.6 trillion $1.0 trillion $0.9 trillion $1.5 trillion $1.5 trillion $1.2 trillion $0.1 trillion $0.2 trillion $0.2 trillion $0.7 trillion $0.7 trillion $1.5 trillion $1.8 trillion $2.0 trillion $1.7 trillion $1.6 trillion $0.1 trillion $0.3 trillion $0.4 trillion $1.4 trillion Canada France Italy Norway Australia According to the table, the country with the lowest average yearly budget deficit over the time period is O a) Australia. O b) France. Oc) Norway. O d) Italy. e) Canada.

Use the following table to answer the next eight questions, where GDP = gross domestic product. Public Debt over Time 2001 2011 Debt GDP Debt GDP $0.6 trillion $1.0 trillion $0.9 trillion $1.5 trillion $1.5 trillion $1.2 trillion $0.1 trillion $0.2 trillion $0.2 trillion $0.7 trillion $0.7 trillion $1.5 trillion $1.8 trillion $2.0 trillion $1.7 trillion $1.6 trillion $0.1 trillion $0.3 trillion $0.4 trillion $1.4 trillion Canada France Italy Norway Australia According to the table, the country with the lowest average yearly budget deficit over the time period is O a) Australia. O b) France. Oc) Norway. O d) Italy. e) Canada.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 14E

See similar textbooks

Similar questions

Calculating the debt to GDP ratio Suppose the following statistics characterize the financial health of the hypothetical economy Debtenburg at the end of 2017: • Gross domestic product (GDP) is equal to $180 billion. • The national debt is equal to $234 billion. • The government has a budget deficit of $9 billion. • The debt ceiling in Debtenburg is set at $253 billion. The following calculations help you see how the ratio of debt to GDP changes from one year to the next. Complete the first row of the following table by computing the ratio of national debt to GDP. Suppose that nominal GDP remains at $180 billion in 2018, and again the government runs a budget deficit of $9 billion. For simplicity, assume the interest rate on the national debt is 0%, and no payments are being made to reduce the debt. Calculate national debt and the debt-to-GDP ratio in 2018. Enter these values in the second row of the following table. Year GDP National Debt Ratio…
24. Which of the following is used as a remedial measure during a recession in an economy? a.Decrease taxes and increase government spending b.Increase taxes and government spending c.Decrease taxes and government spending d.Increase taxes and decrease government spending
How to calculate the level of GDP base on the MPC & MPS? Historical durations of recessions? The effect of foreign trade on the U.S. economy? Importance of who holds the public debt?
If income tax rates are increased in an attempt to balance the federal budget, we should expect to see a. a decrease in consumption and a decrease in GDP. b. a decrease in consumption and an increase in GDP. c. an increase in consumption and an increase in GDP. d. an increase in consumption and a decrease in GDP.
Cite the five major demand-side components of GDP. Then, identify the major elements affected by fiscal policy.
In Country X ( population of 100 million), the GDP per capita for the year 2022 was $10,000, and the GDP deflator for the same year was 120. The government revenue amounted to $2.5 billion, with government spending totaling $3 billion. Considering these values, calculate: a) The nominal GDP of Country X for the year 2022. b) The real GDP of Country X for the year 2022. c) The government budget balance for the year 2022. d) If the government decides to implement a policy to reduce carbon emissions, leading to increased spending of $150 million on renewable energy projects, how would this affect the government budget balance?
Which of the following is an appropriate fiscal policy response to a negative GDP gap? a. raise income tax rates b. increase government spending c. raise real interest rates d. lower real interest rates
The figure shows the flows of expenditure and income on Big Foot Island. In 2016, W was $56 billion; V was $20 billion; U was $15 billion; J was $25 billion; and Z was $2 billion. Calculate total expenditure and total taxes. 1- Total income is $…. billion. 2- Net taxes equal $… billion.
From 2008 to 2012, in the aftermath of the financialcrisis, the ratio of government debt to GDP in theUnited Statesa. increased markedly.b. decreased markedly.c. was stable at a historically high level.d. was stable at a historically low level.
Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any income earned above $50,000. Suppose that the economy has a Government Budget for this year (year 1) of $58,500, and a total of five individuals earning the following income: Amy $20,000, Betty $40,000, Charlie $60,000, Dimitry $80,000, Evelyn $100,000. In chapter 5 we saw that GDP can be calculated in two ways, via the expenditure approach or the income approach, and that when the income approach is used, there must be adjustments made to National Income, specifically adding the Consumption of Fixed Capital and a Statistical Discrepancy. For the sake of simplicity, let's imagine that National Income is equal to GDP, in other words the Fixed Capital and the Statistical Discrepancy are equal to zero. Now assume that a recession (triggered by a reduction of Aggregate Demand) causes each of the five incomes to fall by 25%. In other words, income is 75% of what they used to be. What is the…
Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any income earned above $50,000. Suppose that the economy has a Government Budget for this year (year 1) of $58,500, and a total of five individuals earning the following income: Amy $20,000, Betty $40,000, Charlie $60,000, Dimitry $80,000, Evelyn $100,000. In chapter 5 we saw that GDP can be calculated in two ways, via the expenditure approach or the income approach, and that when the income approach is used, there must be adjustments made to National Income, specifically adding the Consumption of Fixed Capital and a Statistical Discrepancy. For the sake of simplicity, let's imagine that National Income is equal to GDP, in other words the Fixed Capital and the Statistical Discrepancy are equal to zero. 6. What is the Nation's Income in year 2?
Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any income earned above $50,000. Suppose that the economy has a Government Budget for this year (year 1) of $58,500, and a total of five individuals earning the following income: Amy $20,000, Betty $40,000, Charlie $60,000, Dimitry $80,000, Evelyn $100,000. In chapter 5 we saw that GDP can be calculated in two ways, via the expenditure approach or the income approach, and that when the income approach is used, there must be adjustments made to National Income, specifically adding the Consumption of Fixed Capital and a Statistical Discrepancy. For the sake of simplicity, let's imagine that National Income is equal to GDP, in other words the Fixed Capital and the Statistical Discrepancy are equal to zero. Assuming a Marginal Propensity to Save (MPS) of 20% or 0.20, use the Keynesian Multiplier to determine the additional amount of government spending required.