Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in taxes will have on output, exports, imports, and net exports. Clearly label all curves as well as the initial and final equilibria.
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Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in taxes will have on output, exports, imports, and net exports. Clearly label all
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- Using the domestic goods demand and net exports graphs, illustrate graphically and explain the effects of a decrease in taxes on output, exports, imports, and net exports. Label all the curves, the initial and new equilibrium points.Using the ZZ(The line ZZ represents the demand for domestic goods (including exports) and NX graphs, illustrate graphically and explain what effect a reduction in foreign output (Y*) will have on output, exports, imports, and net exports. Clearly label all curves and clearly label the initial and final equilibria.Explain how the removal of online purchase taxes on ICT devices may effect a country's national income.
- Draw a diagram and illustrate the effects of the following on the net exports function for the United States: a. The French government imposes restrictions on French imports of U.S. goods. b. The U.S. national income rises. c. Foreign income falls. d. The dollar depreciates on the foreign exchange market.Following a tax cut by government, domestic investment will ________ and net exports will ________. increase; increase increase; decrease decrease; increase decrease; decreaseLilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $1.06$1.06 billion. The country collected $1.05$1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance? Enter your answer to two decimal places. budget balance: $ ______ billion In the last fiscal year, Lilliput was running a. a budget surplus b. a balanced budget c. a budget deficit
- If a country's fiscal revenue is 1,908,408.87, and its fiscal expenditure is 2,813,922.47, find the fiscal-balance-to-GDP ratio (expressed as %), given the GDP is 15,434,151.80.Using the following data, determine: National Income (GDP) 1,275 billion Marginal propensity to consume, b 0.9 Proportional rate of taxes 0.35 Autonomous expenditure 45 billion Exports 400 billion Marginal propensity to import, MPIm 0.23 Part 1: Level of Canadian imports, M? Part 2: Level of Canadian net exports, NX? Part 3: Is the trade balance in: (answer 1 for Surplus or 2 for Deficit )The following table shows the approximate value of exports and imports for the United States from 2006 through 2010. Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth. Year GDP Exports Imports Exports – Imports Exports – Imports (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of Dollars) (Percentage of GDP) 2006 13,399.00 1,471.00 2,240.30 -769.30 -5.74 2007 14,062.00 1,661.70 2,375.70 -714.00 -5.08 2008 14,369.00 1,843.40 2,553.80 -710.40 -4.94 2009 14,119.00 1,578.40 1,964.70 -386.30 -2.74 2010 14,660.00 1,837.50 2,353.90 -516.40 -3.52 Step 3 In 2006, Net Exports = $1471.0 - $2240.30 = -$769.30. Net Exports as percentage of GDP = -769.30 / 13399 * 100 = - 5.74% Similarly has been calculated for other years Between 2007 and 2008, the _____________ in dollar terms and…
- Show how a GH¢2,000 increase in government spending financed by a GH¢2,000 increase in taxes will affect the level of national income.Of the four choices below, which causes a shift in the Supply of dollars to the right? A. An expansionary fiscal policy that raised U.S. income and increased U.S. imports.B. An expansionary fiscal policy that raised U.S. income and reduced U.S. imports.C. A contractionary fiscal policy that reduced U.S. income and lowered U.S. imports.D. A contractionary fiscal policy that reduced U.S. income and increased U.S. imports.In the ruins of an ancient Mesopotamian civilization, Dr. Jones has found what appears to be a partially intact government records about economic activity in the kingdom. From the recovered tablets, he learned that GDP was 12 billion, private consumption was 9.5 billion,transfers to poor were 1.5 billion, private investments were at 2.1 billion, government purchased goods and services in the amount of 1.7 billion and collect 3 million in taxes. Assuming the data are correct, what can you say about(a) net exports, (b) private savings, and (c) public savings. What do the numbers in (a), (b), and (c) mean?