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3 years ago

Potential GDP of $12 trillion and if real GDP equaled potential GDP, the budget deficit would be $1 trillion.

Business

1 answer:

Karo-lina-s [1.5K]3 years ago

8 0

Answer:

D. deficit of $1 trillion; surplus of $4 trillion

Explanation:

If the economy reaches their potential at 12 trillion the government would run a deficit of 1 trilllon which means there is an structural deficit of 1 trillion

As currently there is a surplus of 3 trillion This mean the economy is in a cycle under which there is a surplus of 4 trillion

current budget - structural budget = cyclical

3 - (-1) = 3 + 1 = 4

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Say the marginal tax rate is 30 percent and that government expenditures do not change with output. Say also that the economy is

tekilochka [14]

Answer:

a. The Cyclical deficit refers to the deficit arising from the difference between the potential output and the actual output.

The question assumes that the economy is producing at potential which means actual output equals potential output.

Cyclical Deficit = Tax rate * ( Potential Output - Actual Output)

Cyclical Deficit = 0.3 * 0

Cyclical Deficit = $0

b. Structural deficit occurs even when the economy is at potential because it refers to Government deficits that happen when the economy is experiencing normal activity.

Structural Deficit = Actual deficit - Cyclical deficit

Structural Deficit = 200 billion - 0

Structural Deficit = $200 billion

c. Output is $200 billion below potential

Cyclical Deficit = Tax rate * ( Potential Output - Actual Output)

Cyclical Deficit = 0.3 * 200

Cyclical Deficit = $60 billion

Structural Deficit = Actual deficit - Cyclical deficit

Structural Deficit = 200 billion - 60

Structural Deficit = $140 billion

d. Output is $100 billion above potential

Cyclical Deficit = Tax rate * ( Potential Output - Actual Output)

Cyclical Deficit = 0.3 * -100 as actual is above potential

Cyclical Deficit = -$30 billion

Structural Deficit = Actual deficit - Cyclical deficit

Structural Deficit = 200 billion - (-30)

Structural Deficit = $230 billion

7 0

4 years ago

Freight car loadings over an 18-week period at a busy port are as follows:

Tamiku [17]

Answer:

y = 7.678X + 357.614 ;

518.852 ; 526.53 ;

Week 78;

Explanation:

Given the data :

Week Number Week Number Week Number

1 370 7 415 13 450

2 380 8 425 14 455

3 390 9 435 15 475

4 380 10 425 16 485

5 390 11 435 17 495

6 395 12 445 18 505

The linear trend line for expected freight car loading obtained using a linear model calculator is :

y = 7.678X + 357.614

y = expected freight car loading

X = week

m = slope = 7.678 ;

c = intercept = 357.614

B.)

predicted loading for week 21:

X = 21

y = 7.678(21) + 357.614 = 518.852

Predicted loading for week 22:

y = 7.678(22) + 357.614 = 526.53

C.)

Week loading volume should exceed 950:

y = 950

950 = 7.678X + 357.614

950 - 357.614 = 7.678X

592.386 = 7.678X

X = 592.386 / 7.678

X = 77.153685

X = 78 (should exceed 950)

7 0

3 years ago

which statement regarding the federal trade commission (ftc) and the consumer protection laws related to funeral home services i

cestrela7 [59]

It is inaccurate to say FTC does not regulate funeral home services because it does not regulate this sector of business.

<h3>What is the function of Funeral rule of Federal Trade Commission?</h3>

The Federal Trade Commission (FTC) strives to stop unfair, dishonest, and fraudulent commercial activities. They also offer information to aid consumers in recognizing, avoiding, and stopping fraud and scams. The FTC Funeral rule became operative on April 30, 1984.

Every year, the FTC performs undercover inspections to ensure that funeral establishments are abiding by the Funeral Rule. The Funeral Rule is in effect whenever a consumer asks a funeral provider for information, if the consumer is looking into pre-need or at-need preparations.

To know more about Federal Trade Commission, check out:

brainly.com/question/8244775

#SPJ4

5 0

2 years ago

The Stibbe Construction Company switched from the completed contract method to the percentage-of-completion method of accounting

Svetllana [295]

Answer:

The correct answer is A

Explanation:

Change in accounting principle is the term which is defined as when the business choose among the GAAP (generally accepted accounting principles) or changes the method with which the principle is used. These principles impact the way or the method used, and then estimates the particular recalculation.

For example, company using the different method of depreciation after the 1st year of operations pr switching among FIFO to LIFO methods of inventory valuation.

So, in this case, the company switch or change the completed contract method to the percentage of completion accounting method. Therefore, the company uses the change in the accounting principle.

6 0

3 years ago

Read 2 more answers

Which statement is TRUE about insurance coverage on customer brokerage accounts maintained at banks registered solely as municip

Norma-Jean [14]

Answer: D. No insurance protection is offered on customer municipal accounts maintained at bank broker-dealers

Explanation:

Broker-Dealer are required to register their customers for insurance under the Securities Investor Protection Corporation (SIPC).

Broker-Dealers who however handle only tax-exempt securities such as municipal bonds are not required to be registered under the SIPC.

As this bank handles only municipal securities, they is not required to be registered under the SIPC which means that no insurance protection is offered on customer municipal accounts maintained by them.

5 0

4 years ago

Potential GDP of​ $12 trillion and if real GDP equaled potential​ GDP, the budget deficit would be​ $1 trillion.

Potential GDP of $12 trillion and if real GDP equaled potential GDP, the budget deficit would be $1 trillion.