Why will direct taxes increase faster than per capita income?

Q: What is the importance of fiscal policy during times of economic recession?

A: Fiscal policy refers to the type of the economic policy in which the government of a country tries…

Q: Explain the concept of Fiscal Policy

A: Definition of Fiscal Policy: Fiscal policy is a policy of government to control the economy through…

Q: Which of these fiscal options do you think might be favored by a person who wants to preserve the…

A: Contractionary fiscal policy means an increase in taxes or an increase in government expenditure. It…

Q: What would happen if contractionary fiscal policy were implemented during an economic boom but,due…

A: The fiscal policy is a policy of the government which includes instruments namely taxes, government…

Q: Revenue from tax is always greater than government spending in SouthAfrica;

A: A tax is a compulsory financial charge being imposed upon a taxpayer by a governmental organization…

Q: Discuss one likely affect of fiscal policy financed via the accumulation of additional government…

A: Fiscal policy is related to government spending and use of taxes as well as subsidies for the…

Q: What are the short-run and long-run implications when it comes to government spending changes versus…

A: Government Spending is defined as the money that is spent by the government or the public sector of…

Q: Discuss the consequence of a rise in direct taxes to the economy as a whole

A: Taxes: The direct tax included the income tax that is levied on the income of an individual. Income…

Q: Compare and contrast Demand Side and Supply Side tax cuts.

A: Macroeconomics have two sides to the economy, demand-side economy and supply-side economy. The…

Q: What are the consequences of an increase in direct taxation?

A: Tax is the charge which is levied by the government. It is a source of government revenue which the…

Q: How much fiscal stimulus or restraint occurred between

A: Fiscal stimulus refers to the amount by which the structural deficit in a nation rises. It can also…

Q: How does the Expansionary and Contractionary Fiscal Policy affect the Inflation, GDP, Economic…

A: The government uses fiscal policy to increase or decrease the aggregate output. It can increase or…

Q: What is public debt? Why public debt a burden on future generation?

A: Public debt refers to the entire amount borrowed by the government to meet its development budget,…

Q: Identify whether each of the following taxes is progressive or regressive. a. Personal income tax:…

A: Progressive tax is one that is higher with the increase in income, while regressive tax falls with…

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 must be true about the level of government expenditures and tax revenues for the federal…

A: Government expenditure is the amount spent by the government in order to provide goods and services…

Q: Why is identifying potential opportunities, and managing within predictable limits for fiscal policy…

A: Fiscal policy is an important tool for dealing with the economy on account of its capacity to…

Q: Which of the following statements illustrate a regressive tax? Tom gets a new job and his income…

A: A regressive tax is mainly applied in a manner that the tax rate decreases as the total taxable…

Q: EXPLAIN THREE WAYS IN WHICH TAXATION AND GOVERNMENT SPENDING IMPACT THE ECONOMY POSITIVELY AND…

A: Positive impact of taxation Cutting taxes enhance demand by increasing disposable income and…

Q: What type of tax raises the most revenue for the federal government?  What is the largest source of…

A: What type of tax raises the most revenue for the federal government?  What is the largest source of…

Q: Explain the instuments of Fiscal policy.

A: Monetary and fiscal policy are the 2 most important type of policies in the economy. Monetary policy…

Q: Question: What Must Be True About The Level Of Government Expenditures And Tax Revenue... What must…

A: Government budget: - The government budget is the description of the government's expected revenue…

Q: Does it matter that increased government debt/GDP ratios place a higher tax burden on future…

A: It is the ratio of a country's public debt to its gross domestic product that is used to measure its…

Q: Government collects the largest percentage of its revenue in which of the following ways?

A: Taxes refer to the monetary payment made to the government of a nation on the purchase or sale of…

Q: If a government runs a budget deficit of $10billion dollars each year for ten years, then a surplus…

A: The deficit accumulated after 10 years of budget deficit will be: budget deficit=10×10=$100 billion…

Q: Do you think taxpayers would be willing to pay higher property taxes if the revenue is earmarked for…

A: The practise of allocating tax or other revenues to a specific programme or purpose is known as…

Q: What is the main reason for employing expansionary fiscal policy during a recession?

A: Fiscal policy is an instrument used by the government and the central bank to look on to the…

Q: Discuss whether supply-side policies have been successful in improving the performance of an economy…

A: Supply- side policy:- These policies are attempts of government in order to enhance the productivity…

Q: When governments run budget deficits, how do they make up the differences between tax revenue and…

A: A government budget is a statement of its planned expenditures and revenue receipts for a given time…

Q: Explain the relationship between changes in the economic structure of direct tax revenues!

A: For developing and emerging economies,  a sufficient amount of tax revenues are a necessity for a…

Q: Suppose a tax is such that an individual with an income of $10,000 pays $2,000 of tax, a person with…

A: Taxes is the compulsory payment levied on the citizens by the government. The tax is said to be…

Q: Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $170…

A: a.  As the tax rate at every unit of Real GDP is the same, i.e. 20% of the Real GDP, therefore, the…

Q: Which of the following is not a means of financing government spending? Government subsidies…

A: The government mainly finance its spending on the economy with the help of tax revenues it earns.…