Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2. a. The balance

  1. Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2.

a. The balance on the government's budget at a GDP level of $450 billion is a (Click to select) deficit surplus of $ billion.

b. The balance on the government's budget at a GDP level of $800 billion is a (Click to select) deficit surplus of $ billion.

c. At what level of GDP will the economy of Robok have a balanced budget?

Robok will have a balanced budget at a GDP level of $ billion.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a The balance on the governments budget at a GDP level of 450 billion is a Click to select deficit s... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

3rd Canadian edition

1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054

More Books

Students also viewed these Economics questions

Question

What is intrinsic motivation? (p. 257)

Answered: 1 week ago

Question

is Internet an outside, inside, or dmz zone

Answered: 1 week ago