Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: Taxes
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Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the
government deficit is $200, consumption is $3,800, and the
of:
Taxes
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- how can a larger government fiscal deficit cause a larger international trade deficitLet us imagine that there is a country which displays the following statistics. C (Consumption) is one-half of GDP, and I (Investment) is one-sixth of GDP. G (Government expenditure) is $2000 larger than investment. The country has a trade deficit of $700. What is the country's approximate GDP? $1300 $9100 $7800 $65001. How could a greater fiscal deficit create a greater trade deficit? 2. What would you do to reduce the deficit? 3. What is the opportunity cost of government spending on servicing the interest on the debt. 4. If the federal government wished to reduce the deficit to any significant degree without raising taxes, where would the reduced spending likely to have to come from? 5. Assume the federal government replaces the federal income tax with a sales tax placed on consumption expenditures. Analyze the impact of this tax change on taxation efficiency and equity.
- A country has 4,000 in domestic savings and firms spent 4,140 on new plant and equipment. The national budget surplus is 60. What must the country’s trade balance be?Question 5 What is meant by "a tariff on imports?" Summarize the domestic effect of a tariff on the price of imported goods? Question 6 What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal policy to stimulate consumer spending. (You must use the terms disposable income and demand). Question 7 What is meant by economic growth and why is it one of the most important goals macroeconomists seek to achieve? In your explanation, show the relationship between production, consumption, and investment in periods of economic growth? Question 8 What is meant by the "National Debt?" Explain why the "National Debt" has been both a"benefit and a burden". Give one example showing a benefit and one example that shows the "National Debt" is a burden.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. GDP Exports Imports Exports - Imports Year (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Percentage of GDP) 1983 3,535.0 277.0 328.6 -51.6 -1.46 1984 3,931.0 302.4 405.1 -102.7 -2.61 1985 4,218.0 302.0 417.2 -115.2 -2.73 1986 4,460.0 320.3 452.9 -132.6 -2.97 1987 4,736.0 363.8 508.7 -144.9 -3.06 Source: "Income, Expenditures, Poverty, & Wealth: Gross Domestic Product (GDP)," United States Census Bureau, United States Department of Commerce, last modified September 2011, accessed June 10, 2013, https://www.census.gov/library/publications/2011/compendia/statab/131ed/income-expenditures-poverty-wealth.html. Between 1984 and 1985, the in dollar terms and as a percentage of GDP.
- Calculate the revenue deficit of a country where revenue receipts is $10,000 million and the revenue expenditure is $15,600 millionSketch a diagram of how a budget deficit causes a trade deficit. (Hint: Begin with what will happen to the exchange rate when foreigners demand more U.S. government debt.)In trade negotiations with the Japanese over the large US trade deficit with Japan, the US administration has urged the Japanese government to undertake a more expansionary fiscal policy. Explain how this might affect the US trade deficit with Japan.
- Assume the gross domestic product is $6,000 personal disposal income is $5,100, the government deficit is $200, consumption is $3,800 and the trade deficit is $100. What is the size of: Private savings Investment Government spending National savings Taxes Public savingsWhat is Internal Debt in the Philippines?For each of the following, indicate which type of government spending would justify a budget deficit and which would not. Increased federal spending on Medicare Increased spending on education Increased spending on the space program Increased spending on airports and air traffic control