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

Q: What is the relative importance of taxation to the economy of the country

A: Taxes are a source of government revenue which is charged on the goods and services purchased by the…

Q: What is Fiscal Policy? Discuss types of Fiscal policies

A: Fiscal policy refers to change in government expenditure and revenue(taxes) in order to achieve…

Q: b. The tax system is regressive for income levels less than $100,000 and progressive for income…

A: A regressive tax is one where the average tax burden decreases with income. Low-income taxpayers pay…

Q: Assuming a 6% sales tax is levied on all consumption, complete the following table, answers (a)…

A: Tax revenue is the major source of revenue for the government which helps the government in…

Q: Help Save&Exit Submit Suppose an income tax is imposed that takes $1,000 from someone with an income…

A: The correct answer to the abovementioned question is Progressive tax.

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: he U.S tax system a progressive income tax. What is a progressive tax

A: Revenues are required to smoothly run the government. Government earn major parts of the revenue…

Q: iven: C = 250 + 0.8 Y  I = 150 G = 300 TR = 100 NX = 100 t =0.25 i) Find the equilibrium…

A: In real sector point at which aggregate demand is equivalent to total output/income (Y), is the…

Q: If the government got rid of sales tax, how might this affect the market? shift AD to the right…

A: When the government rid of sales tax, then the price of the goods decreases. Decreasing price leads…

Q: What is the difference between an expenditure (cash-flow) tax and a sales tax? What is the…

A: Tax: It refers to the income of the government. The taxes are the income that people will pay…

Q: There are two individuals in a society. The federal income tax in this society is such that that the…

A: Taxation: - Taxation is the imposition of some charges by the government of a country on the…

Q: What is the difference between government expendituresand government purchases?

A: Government payment is that the quantity of cash spent by the govt on buying merchandise and…

Q: Barry can work 3120 hours in a (non-leap) year. He has the opportunity to work for $20 per hour.…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

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

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Use a circular flow diagram to show how the allocation of resources and the distribution of income…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Calculate net indirect taxes if GDP at FC is $33,000 and the GDP at MP is 37,000

A: The data presented in the question above is:- GDPFC = $33,000 GDPMP = $37,000 Net indirect taxes is…

Q: What will happen to the amount of taxes collected by the government during a recession when there is…

A: please find the answer below.

Q: What role taxes policy plays in determining the GDP or national income in an economy? Explain with…

A: Taxes play a crucial role in determining GDP or national income. It helps the government finance…

Q: What is the difference between progressive and regressive tax system?

A: Answer: In the progressive tax system the level of taxes rises with the increase in income, the…

Q: What is the importance of taxation

A: Taxation is proportional to a person's financial status, encouraging social and economic equality.…

Q: Define individual income tax. A. Individual income tax is the tax an individual pays to the…

A: Meaning of Tax Imposition:The term tax imposition or the tax hike refers to the situation under…

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: 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: Use the circular flflow diagram to show how each of the following government actions simultaneously…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: There are two individuals in a society. The federal income tax in this society is such that that the…

A: Progressive taxation means the tax rate is lower for low-income groups and higher for high-income…

Q: what is Regressive Tax System in economics?

A: A regressive tax system refers to the system of taxation where tax rate and taxable amount are…

Q: Which of the following is true of indirect business taxes? a) They are included in corporate…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: What is the difference between indirect taxes and net indirect taxes? Macro economics

A: Taxation: - Taxation is the imposition of some charges by the government of a country on the…

Q: There are two individuals in a society. The federal income tax in this society is such that that the…

A: A progressive tax is one that is based on the ability of the taxpayer to pay.

Q: Based on the IRS table, Jake calculates that his marginal tax rate is _ when his annual taxable…

A: Answer; The marginal tax rate is the tax rate corresponding to the tax bracket in which the income…

Q: Which of the following is incorrect regarding tax revenues? a.they increase during recessions…

A: The correct solution is option a.

Q: Which of the following sequence of events follows a decrease in net taxes? A) AD↑ = Y↑ = MDĮ = r\.…

A: Decrease in net taxes happens with the increase in disposable income which will bring a rise in the…

Q: What is progressive and regressive tax?

A: Tax is a mandatory payment usually levied by the government authorities on the individuals,…

Q: how are consumption taxes different from income and property taxes?

A: Taxes are compulsory payments to governments without expectation of direct return or benefit to the…

Q: Suppose the city of Strelsau has a 10% property tax on rental properties. Rudolph makes $100,000 a…

A: A tax is an obligation to government by residents of a country for consumption and production. It is…

Q: Briefly explain the purpose served by payroll taxes and how they are collected. Describe any comment…

A: Taxes are mandatory fee that is paid by the firms and households to the government. It is collected…

Q: what's the relation ship between Tax Burden and Inequality ?

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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

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