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- 7. The following is information from the national income accounts for Ensperanza Island, a country on the Zambezi Ocean. Figure 1.1 Ensperanza Island GDP К 6000 Gross Investment K800 Net Investment К200 Consumption К4000 Government Purchases of goods and services K1100 Government Budget surplus K30 Use the information in figure 1.1 to answer the following question. Calculate: (i) NDP (ii) Net Exports (ii) Government taxes minus transfers? (iv) Disposable personal income?a) Place the numbers below in the appropriate blanks in the figure above (billions of dollars) Personal Consumption Rents Interest Corporate Profits Gross Investment Government Purchases Wages Imports Exports Savings Depreciation Taxes $2,582 14 287 297 669 815 2,347 178 100 2,082 582 500 (i) Net Exports (ii) Total Leakages (iii) Personal Income (iv) Personal Disposable IncomeAssume for the following scenario that there is a 10% sales tax on gasoline. Gasoline Expenditures Total Tax Due Name (Dollars) (Dollars) Determine the amount of money each individual in the following table spends on gasoline taxes and their average tax rate. Total Taxable Income Average Tax Rate (Percent) (Dollars) Tim 10,000 10,000 Brian 40,000 32,000 Crystal 55,000 38,500 Hilary 85,000 51,000 Given the information in the previous table, sales tax on gasoline is because the average tax rate as income rises.
- Refer to the data in the table below to answer the following question. Federal Budget: 2012 Line Item National Defense Human Resources Medicare Other Physical Resources Net Interest Other Functions Undistributed Offsetting Receipts Total 2012 In millions of dollars 635,698 2,942,658 451,208 2,491,450 220,255 290,496 185,702 - 180,820 4,093,989 Compute the ratio as a percentage of Physical Resources to Human Resources and determine the best interpretation of the percentage. O Physical Resources spending is 7% as much as the amount spent on Human Resources. O Human Resources spending is 7% as much as the amount spent on Human Resources. O The amount spent on Physical Resources is 8%. O Physical Resources is 17% of the budget.What are some fiscal policies for improving the technologies that the economy will have to draw upon in the future?member? 31. INCOME TAX The accompanying table represents the 2007 federal income tax rate schedule for single taxpayers. a. Express an individual's income tax as a function of the taxable income x for 0 =xs 97,925 and draw the graph. b. The graph in part (a) should consist of four line segments. Compute the slope of each segment. What happens to these slopes as the taxable in- come increases? Interpret the slopes in practical terms. If the Taxable Income Is The Income Tax Is Of the Amount Over Over But Not Over $7.825 10% $7.825 $31.850 $783 + 15°. $7.825 $4.387 25%. / $31.850 $31.850 $64.250 $97.925 $12.487 28°. $64.250 $64.250
- 6. Expenditures and Income Approaches Consumption Expenditures Wages Taxes on Production and Imports Government Purchases Statistical Discrepancy Imports Undistributed Corporate Profits Rent Proprietor's Exports Dividends Depreciation Income Interest Gross Private Domestic Investment Corporate Income Taxes Corporate Profits Net Foreign Factor Income $69000 $76000 $16000 $58000 $11000 $47000 $14000 $42000 $15000 $34000 $22000 $24000 $31000 $41000 $18000 $54000 $17000 Complete parts a and b. a. Given the numbers above, solve for Real GDP using the expenditures approach. Given the numbers above, solve for the National Income (NI). b.Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70(c) The following table is the information of the real GDP and all the expenditures (the numbers are in billions) for Country XYZ. Planned Government Real GDP (S) Consumption ($) Net Exports ($) Investment ($) 350 Purchases ($) 450 4000 3500 -100 5000 4300 350 450 -100 6000 5100 350 450 -100 7000 5900 350 450 -100 (i) What is the equilibrium level of real GDP? (ii) If potential GDP is $7000 billion, is the economy at full employment? If not, what is the condition of the economy? If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
- The equilibrium level of real GDP is Real GDP Consumption (Y) (C) $8,000 $6,200 9,000 10,000 11,000 12,000 6,850 7,500 8,150 8,800 Planned. Gov't Net Investment Purchases Exports Aggregate Planned (1) $1,675 (G) (NX) $1,675 -$500 Expenditure $9,050 1,675 1,675 -$500 9,700 1,675 1,675 -$500 1,675 -$500 1,675 -$500 1,675 1,675 10,350 11,000 11,650 Unplanned Change in Inventories $-1,050 -700 -350 350Example For an economy the following data is given : Consumption (C) Investment (I) 100 + 0.8 Y. %3D 150 75 Government Expenditure (G) Rate of income tax (T) %3D 0.25Y (a) Find the equilibrium level of incomę. (b) What is the value of multiplier with tax and without tax ?-0.75% Question 50 A circular flow diagram O is shows the link between government spending and investment O it shows how government and firms are connected through factor and government markets O shows how firms and households are connected through product and factor markets O it shows foreign exchange markets Su No new data to save. Last checked at 6:47am discord.comis sharing your screen and audio. Stop sharing Hide 82 F