9. Which of the following is the most correct statement about tax burdens? а. A tax burden falls most heavily on the side of the market that is closcr to unit clastic. A tax burden falls most heavily on the side of the market that is elastic. A tax burden is distributed independently of relative clasticitics of supply and b. с. demand. d. A tax burden falls most heaviły on the side of the market that is inelastic.

Q: stock of government debt Will Con ue to rise a. Increases its taxes. O b. Runs a budget surplus. Oc.…

A: When current expenses exceed/surpasses the amount of revenue collected via normal operations, a…

Q: 6. Explain how built-in (or automatic) stabilizers work. What are the differences between…

A: GDP is the sum of consumption, investment, government spending and net exports.  GDP = C+I+G+NX

Q: Miller wants to discourage energy drink purchase, so he's considering a $1 tax or $2 tax on the…

A: The Laffer curve, given by Arthur Laffer, is a supply-side economics' paradigm that illustrates the…

Q: A Moving to another question will save this response. Quèstion 7 Which of the following fiscal…

A: Answer: A $10 billion increase in taxes and a $30 billion decrease in government spending would be…

Q: Show and explain how an expansionary fiscal policy can cause crowding-out effect by using aggregate…

A: The phenomenon, whereby increased government expenditure may lead to a squeezing of private…

Q: Which curve shifts and in which direction when the following events occur in the tax accounting…

A: a) Answer:- Demand increases. Explanation:- On tax day, ever more individual are going to look to…

Q: Which of the following fiscal policy changes would be the most contractionary? O A. a $10 billion…

A: Fiscal and monetary policies are used by governments to achieve certain economic goals. The monetary…

Q: 11. Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of the tax…

A: Taxes Change (Reduction)=-$50 billion Income Change(Increase)=$1000 billion Tax multiplier shows the…

Q: Bldentify the impact that each of the following changes in fiscal policy woula have on the level of…

A: The fiscal policy refers to the government policy of expenditure and taxes. The change in government…

Q: The formula for the tax multiplier is Select one: O a. -MPC/(MPC + 1). O b. MPC/ (1 MPC). O c. 1/(1-…

A: Tax multiplier assumes that a change in tax would affect the consumption, keeping everything else…

Q: (2./The accompanying diagram shows the current mac- roeconomic situation for the economy of…

A: The central bank conducts the monetary policy by adjusting the money supply by conducting open…

Q: A. If your MPC = 0.6 and government spending (G) increases by $800. What will happen to the…

A: a. MPC = 0.6 ∆G=$800

Q: Define the tax multiplier and give the algebraic expression.

A: Since there are multiple question posted, we will answer only the first one.

Q: 15. If consumers in a country spend 3/4 of their disposable income. If their government increases…

A: MPC=34MPC=0.75

Q: 2) Explain the macroeconomic effects of a tax cut according to the Ricardian Equivalence…

A: People are forward-looking and believe in consumption smoothing, according to Ricardian…

Q: Suppose that in an effort to reduce the deficit, it is decided that some luxuries should be heavily…

A: Ans.  There are two prospects given here to be taxed: Paintings and Yacht. Painting is both…

Q: Which of the following would be classed as an expansionary fiscal policy? O A. An increase in the…

A: Fiscal policy is the one used by the government. The instruments used by the government in a fiscal…

Q: 1. Fiscal Policya. Assume the Economy has an inflationary gap with above average price level,…

A: a) Inflationary gap is said to exist when the real gross domestic product exceeds the maximum…

Q: Mhe marginal propensity to consume is 0.8, the marginal tax rate is 0.2, and the marginal propensity…

A: In the Keynesian macroeconomics model, the equilibrium level of output in the goods market is…

Q: Suppose the stock of government debt in Canada at the end of one fiscal year is $474 billion. If the…

A: Answer: Option D (the government had an overall budget surplus of $18 billion). Explanation: The…

Q: Explain very briefly what you understand from income effect and substitution effects of change in…

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

Q: 12. If the tax multiplier is -6 and taxes are reduced by $100 billion, output: (A) falls by $100…

A: Given information,  Tax multiplier: -6 Change in taxes: -$100 billion To find: change in output

Q: (a) “Anticipated technological improvements will reduce the size of bequests that parents leave to…

A: Since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: 5. Demand side fiscal policy is also known as Keynesian Economic Theory * True O False

A: In simple words we can say that the demand side policies are merely known to be as the economic…

Q: utline the supply-side view of fiscal policy. How does this view differ from the various demand-side…

A: The fiscal policy impact not only affects the demand side but also the supply side. The most…

Q: 14. If the tax multiplier is -6 and taxes are reduced by $100 billion, output: (A) falls by $100…

A: Given:Tax multiplier=-6Change in tax=$100 billion

Q: 1. Consider a two-period economy with lump-sum taxes. Suppose ment announces a tax cut of 10 in…

A:

Q: Refer to the diagram. Discretionary fiscal policy designed to expand GDP is illustrated by O A. the…

A: Answer: Option:B is correct A movement from a to c along curve T2.

Q: Expansionary fiscal policy include Select one: O a. an increase in net taxes O b. an increase in…

A: Meaning of Fiscal Policy: The term fiscal policy refers to the situation, under which the…

Q: 5. If consumers in a country spend 3/4 of their disposable income. If their government increases its…

A: Aggregate demand refers to the overall demand for goods and services in an economy. The aggregate…

Q: The difference between what a government spends and what it collects in taxes in a year is Lütfen…

A: The government revenue is what it earns through its taxes. The government expenditure is what it…

Q: Derive multiplier for a change in the government purchase and the taxes. Why is the tax multiplier…

A: Government multiplier is the ratio of change in income and change in government expenditure. Whereas…

Q: or disagree and explain your answer . During periods of budget surplus (when G< T), the govern- ment…

A: The following problem has been answered as follows:

Q: How large a tax cut would be needed to achieve the same increase in aggregate demand? $ 13 bilion b.…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Q: 16) What is the first signal that policy makers may need to examine expansionary fiscal economic…

A: Expansionary fiscal policy : Due to increment in government expenditure , there will be increase in…

Q: The crowding-out effect is the tendency for a government budget deficit to raise the and investment.…

A: Government budget deficit: - Government budget deficit is the condition in which the government…

Q: 17 of 25 If the federal government increases govemment spending to increase aggregate demand and…

A: Sometimes higher government spending lowers consumption spending and investment spending.

Q: 7. Algebraically derive the government spending and tax multiplier for the case in which tax…

A: Government spending multiplier: At equilibrium, AD = AS Y = C + I + G + NX C = C0 + MPC(Y — T) C0 =…

Q: C. Identify and explain what the spending and tax multipliers d. Explain why a change in taxes and a…

A: The spending plan of the government is supposed to be adjusted if the incomes of the government are…

Q: When the government engages in expansionary fiscal policy there is a. a budget deficit and increase…

A: Fiscal policy is defined as a policy which is undertaken by the government of a country to influence…

Q: government chooses to use fiscal policy to stabilize the economy and the marginal propensity to…

A: Given : Aggregate demand short of amount necessary=$100 billion If aggregate amount in turn shifted…

Q: he data below is for the small economy of Christodea in 2015. Consumption: C = 500 + 0.75Y, Net…

A: Investment multiplier = (1 / 1 - MPC) = (1/ 1- 0.75) = 4 a) So, for government to decrease…

Q: 9.  The lag associated with fiscal policy can:   magnify economic fluctuations. stimulate output…

A: Fiscal Policy:- The use of spending of government and taxation policies in order to impact market…

Q: Compute the amount the government would have to increase spending to close the output gap according…

A: Fiscal policy is the use of government spending and taxation to influence the economy.. Fiscal…

Q: Question 2 Given the following information: 1= 150, G = 150, T-150 and C= 150 +0.75(Yd) At least 2…

A: Consumption function as a tournament consumption and induced consumption. Autonomous consumption…

Q: (a) Assume Consumption (C) is given by the equation C = 500 + 0.6(Y – T). Taxes (T) are equal to…

A: Aggregate expenditure equation in closed economy: AE = C + I + G  Where C is consumption  I is…