Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 27, 2024

Suppose a closed economy generates $2100 output and income in equilibrium. Suppose also that the government spends 300 and imposes a lump-sum tax of 250.

Suppose a closed economy generates $2100 output and income in equilibrium. Suppose also that the government spends 300 and imposes a lump-sum tax of 250. By how much is the government in deficit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

In this closed economy scenariowe can calculate the gove... 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

Step: 3

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 Principles and Applications

Authors: Robert E. Hall, Marc Lieberman

6th edition

1111822352, 1111822354, 9781133708742 , 978-1111822354

More Books

Students also viewed these Economics questions

Question

★★★★★

Suppose the government decides to subsidize (rather than tax) consumption of grits. A: Consider a consumer that consumes boxes of grits and other goods. (a) Begin by drawing a budget constraint...

Answered: 1 week ago

Question

★★★★★

Suppose there is a country with 30 households divided into three categories (A, B, and C), with 10 households of each type. If a household earns 20,000 zips (the countrys currency) or more in a year,...

Answered: 1 week ago

Question

★★★★★

A monopolist has a cost function given by c(y) = y2 and faces a demand curve given by P(y) = 120 y. (a) What is its profit-maximizing level of output? 30. What price will the monopolist charge?...

Answered: 1 week ago

Question

★★★★★

The friction at sleeve A can provide a maximum resisting moment of 125 N ? m about the x axis. Determine the largest magnitude of force F that can be applied to the bracket so that the bracket will...

Answered: 1 week ago

Question

★★★★★

Employing Surveys for Sal's you explored the different tools for receiving feedback in your CSR Tool Belt. You will use a free survey making tool called Survey Monkey to create a survey to address a...

Answered: 1 week ago

Question

★★★★★

As we shall illustrate in Chapter 12, statistical methods associated with linear and nonlinear models are very important. In fact, exponential functions are often used in a wide variety of scientific...

Answered: 1 week ago

Question

★★★★★

Emily is in the final semester of her studies at the University. She has completed successfully all compulsory courses needed for her degree and shemust pass at least four exams to finish her studies...

Answered: 1 week ago

Question

★★★★★

Bigelow Corporation has total assets of $850,000, sales of $1,350,000, and one class of common stock with 375 shareholders, and a class of preferred stock with 250 shareholders, both of which are...

Answered: 1 week ago

Question

★★★★★

Crane Corporation acquired two inventory items at a lump-sum cost of $119000. The acquisition included 2970 units of product LF, and 5940 units of product 1B. LF normally sells for $30 per unit, and...

Answered: 1 week ago

Question

★★★★★

Kalogridis Corp. manufactures industrial dye. The company is preparing its 2011 master budget and has presented you with the following information: a. The projected December 31, 2010, balance sheet...

Answered: 1 week ago

Question

★★★★★

Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows)....

Answered: 1 week ago

Question

★★★★★

Calculate mean, median, standard deviation, minimum, maximum, and counts (n) for all variables in the POS Associates data set that are appropriate (i.e., that are quantitative variables or are...

Answered: 1 week ago

Question

★★★★★

Demetri lives in the city and sometimes uses a ride share service. A ride costs $1.50 for the first mile and $0.25 for each additional mile. Demetri does not want to spend more than $3.75 on a ride....

Answered: 1 week ago

Question

★★★★★

Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The following financial...

Answered: 1 week ago

Question

★★★★★

Indicate whether each of the following expenditure items should be classified as a function (F), organization unit (OU), activity (A), character (C), or object (O). Answer is complete and correct....

Answered: 1 week ago

Question

★★★★★

You recently attended an industry conference. While there, you met up with a friend Roni, who works for a competitor. During a break, Roni implies that if you could get your company to charge for a...

Answered: 1 week ago

Question

★★★★★

the variance of the return on Company B's equity has been 25 for the last five years. What is its standard Deviation of its historical return? its mean return has been 10%

Answered: 1 week ago

Question

★★★★★

Discuss the information available from the following techniques in the analysis of inorganic pigments used in antique oil paintings: (i) Powder X-ray diffraction, (ii) Infrared and Raman...

Answered: 1 week ago

Question

★★★★★

Suppose firms become pessimistic about the future and consequently investment spending falls. With an AD and AS graph, describe the short run effects on real GDP and the price level. If the AS curve...

Answered: 1 week ago

Question

★★★★★

For the economy in problem 7, suppose that the government had purchased $2 billion more in goods and services than you found in that problem, with no change in taxes. a. Explain how each of the...

Answered: 1 week ago

Question

★★★★★

A fellow student in your economics class stops you in the hallway and says: An increase in the demand for money causes the interest rate to rise. But a rise in the interest rate causes people to...

Answered: 1 week ago

Question

★★★★★

The following table shows hypothetical demand schedules for sugar for three separate months. To help make the distinction between changes in demand and changes in quantity demanded, choose the...

Answered: 1 week ago

Question

★★★★★

This question requires you to solve a supply-and-demand model algebraically. Letting p be the price of the product, suppose the demand and supply functions for some product are given by QD= 100 - 3p...

Answered: 1 week ago

Question

★★★★★

Comment on the following statement: "One of the mysteries of semantics is why the government-managed economies ever came to be called planned and the market economies unplanned. It is the former that...

Answered: 1 week ago

Previous Question Next Question