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Doss [256]
2 years ago
5

Say the marginal tax rate is 20 percent and that government expenditures do not also that the economy is at potential output and

that the deficit is $450 billion
a. What is the size of the cyclicel deficit? Instructions: Round your answer to the nearest whole dollar amount Leave no cell blank. You must enter "O" for the answer to grade correctly.
b. What is the size of the structural deficit? Instructions: Round your answer to the nearest whole dollar amount. Leave no cell blank. You must enter "0" for the answer to grade correctly billion
c. How would your answers to a and b change if the deficit was still $450 billion but output was $200 billion below potentiel? Instructions: Round your answers to the nearest whole dollar amount. Leave no cell blank. You must enter "O for the answer to grade correctly Cyclical deficit is $ Structural deficit is s billion
d. How would your answers to a and b change if the deficit was still $450 billion but output was $350 billion above potentiel? enter "O" far the answer to grade correctly billion billion Instructions: Round your answers to the nearest whole dolar amount Leave no cell blank You must Cyclicel surplus is Structural defict s s
e. Which is likely of more concern to policy makers a cyclical or a structurel defict Structural deficit because an economy can elminate it through growth in income Structural deficit because normal stabilization policies will not remove a structural defict Cydlical deficit because an economy cannot grow its way out of t It depends on the state of the economy relative to potential income
Business
1 answer:
Readme [11.4K]2 years ago
5 0

<u>Solution and Explanation:</u>

a) The deficit is structural deficit, not cyclical deficit

b) Structural deficit is $450 billion

Revenue less than outlays; the GDP = Potential GDP

cyclical - during a recession , Structural - normal times

This is the budget deficit at potential GDP

Structural deficit = Total Government deficit - Cyclical Deficit

Government expenditures do not change with output

c) the deficit is both structural and cyclical

200 billion below potential; at potential output it will be 200 billion higher

Cyclical deficit = $200 billion

Structural = 450 - 200 = 250

d) Cyclical surplus = $350 billion

Structural deficit = $100 billion

e) Structural as normal stabilization policies will not remove a structural deficit

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LUCKY_DIMON [66]
To answer the question above on how can international trade agreements lead to economic growth is that it can boost the country's development special to the third world country or other poor country that needs to open their market benefiting that it earns because of more investments coming in.
3 0
2 years ago
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May JuneManuf
Juli2301 [7.4K]

Answer:

Total cash expense= $181,675

Explanation:

Giving the following information:

Manufacturing cost:

April= $155,800

May= $190,300

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Property tax is paid in November.

Depreciation is not a cash expense.

<u>Total cash payment May:</u>

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4 0
3 years ago
Wilma’s Vegetable Market had the following transactions during 2017:
babymother [125]

Answer:

Journal Entries are as follows.

Explanation:

1.   Cash               $25,000 (Debit)

          Common Stock                              $ 25,000 (credit)

2.   Wages             $10,000  (debit)

               Cash                             $10,000 (credit)

3.  Land                         $ 50,000 (debit)

           Common Stock                        $50,000  (credit)

4.    Dividend Declared    $ 1000  (debit)

                    Dividend Payable            $ 1000 ( credit)

And

   Dividend Payable            $ 1000 ( debit)

                 Cash                           $ 1000 (credit)

5.        Cash               $ 3000  (debit)

              Long Term  Investment            $ 3000 (credit)

6.     Cash                    $ 20,000  (debit)

                Sales                        $ 20,000        ( credit)

7.       Inventory           $2000 (debit)

            Cash                      $ 2000  (credit)

8.      Investment                 $ 6000 ( debit)

               Cash                                             $ 6000 (credit)

9.  Bonds Payable                   $ 10,000  (debit)

                 Discount                             $ 1000 (credit) ( if there's any)

                  Common Stock               $ 9,000 ( credit ) ( in case of discount)

10.    Notes Payable                             $ 10,000  (debit)

Interest on Notes Payable                    $ 1,000 (debit) ( suppose there's interest of $ 1000 on $ 10,000 Notes Payable)

                         Cash                                                    $ 11,000 (credit)

4 0
3 years ago
n the United States, many agricultural products (such as corn, wheat, and rice) are subsidized. What are the benefits of subsidi
schepotkina [342]

Answer:

lower prices for consumers and higher prices for producers 

Explanation:

the options to this question wasn't provided . Here are the options:

higher prices for consumers and producers lower prices for consumers and producers higher prices for consumers and lower prices for producers

lower prices for consumers and higher prices for producers 

A subsidy is when the government pays an individual or a firm directly or indirectly. It could be in the form of direct cash payment, tax breaks or grants. Subsidies are usually given to encourage the production of goods and services.

Subsidy on agricultural goods reduces the price paid for agricultural goods and increases supply of goods. It would increase the price earned by producers.

I hope my answer helps you

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Hope that helps!
8 0
3 years ago
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