Calculate the amount of the government deficit

Assignment Help Microeconomics

Reference no: EM13700927

Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion.

a) Calculate the amount of the government deficit;

b) Calculate the primary deficit.

Please show all work so I can see if I got the correct answer since my book won't show the answers.

Reference no: EM13700927

Questions Cloud

Mid-point formula to calculate price elasticity of supply : Use the mid-point formula to calculate the price elasticity of supply (arc elasticity) for a given product under two scenarios: When the price of a good is $100, 25 units are supplied. But when the price increases to $125, 30 units are supplied.

Tax multiplier be smaller than the expenditure multiplier : Why might the tax multiplier be smaller than the expenditure multiplier? Under what circumstances might the reverse be true?

Received a major highway construction contract : A road building contractor has received a major highway construction contract that will require 50,000 m^3 of crushed stone each year for 5 years. The stone can be obtained from a quarry for $7.80/m^3. As an alternative, the contractor has decided to..

Deposited in an account to have annual withdrawals : How much must be deposited in an account to have annual withdrawals of $1000 forever? Interest is compounded quarterly and the interest rate is 9% for the first 10 years and 10% thereafter.

Calculate the amount of the government deficit : Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. Calculate the amount of the government deficit;

Repayment duration for the loan : Bob borrows $52000 from a local bank at an APR of 7.2% compounded monthly. His monthly payments are $52000(A/P, 0.6%, 54) = $1128 for a 54 month loan. If Jim makes an extra payment on the first month of each year, his repayment duration for the loan ..

Calculate the equilibrium level of income for this economy : Suppose the consumption expenditure is C = $100 billion + 0.9*Y. Investment (I) is $100 billion, government spending (G) is $50 billion and exports (X) are $100 billion. Imports depend on the level of income as follows: M = 0.1*Y.

Scale are increasing at low output levels and constant : Can the cobb-douglas production function be used to portray a production process in which returns to scale are increasing at low output levels and constant or decreasing at high output levels?

What is safety factor of part under this design arrangement : Assume that the following data are known for a mechanical part under design: Load Stress is normally distributed with? s=15,000 psi and?s=4,000 psi Strength of part is also normally distributed with ?ST=30,000 psi and ?ST=3,000 psi What is the safety..

User Account

All Pages