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Gennadij [26K]
3 years ago
8

Suppose we have the following information for 2008: Potential output: $17 trillion Actual output: $16 trillion Actual Deficit: $

500 billion Tax Rate: 15% What is the structural deficit in 2008
Business
1 answer:
Step2247 [10]3 years ago
4 0

Answer:

The structural budget in 2008 is $350 billion

Explanation:

Actual deficit = Government spending - Tax Revenue Collection

i.e Actual deficit = G-T

T = (Tax rate) (Actual output)

$500 billion = G - (0.15)($16 trillion)

$500 billion = G - 2400 billion

G =  $500 billion + 2400 billion

G =  $2900 billion

Thus, Government spending is $2900 billion

Structural deficit = G - T'

T' = (Tax rate)(Potential output)

T' = (0.15)(17000 billion)

T' = $2550 billion

Structural deficit = G - T'

Structural deficit = $2900 billion - $2550 billion

Structural deficit = $350 billion

Thus, the structural budget in 2008 is $350 billion

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6 0
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Which one of the following statements related to risk is correct?
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Answer:

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3 0
3 years ago
A commercial bank buys a $50,000 government security from a securities dealer. the bank pays the dealer by increasing the dealer
stealth61 [152]

Answer:

Increased by $50,000

Explanation:

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3 0
3 years ago
Which of the following is an example of consumer problem behavior?
Dahasolnce [82]

Answer:

E. Johnathan eats alone because he feels guilty about his binge-eating habits and gets worked up when waiters attend to him.

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