How does the government collect taxes

Assignment Help Business Management
Reference no: EM132269154

Consider an economy in the short run with the price level P fixed at 1. Other relevant information is:

C=100+0.75(Y-T)

I=750

T=-40+(1/3)Y

G=1000

Y=C+I+G

Answer the following:

a) Solve for the equilibrium level of income Y

b) How does the government collect taxes (T) at equilibrium?

c) Is there a surplus or deficit and how much?

d) Calculate the government spending multiplier.

e) Calculate the new equilibrium level of income if G increases from 1,000 to 1,500 (i.e., ΔG = 500)

f) Calculate the lump-sum tax multiplier.

g) Show that C + I +G = Y and that S = I

Reference no: EM132269154

Questions Cloud

Do you agree or disagree with the research : Discuss current research that links patient safety outcomes to ADN and BSN nurses. Based on some real-life experiences, do you agree or disagree.
Determining the book value per share : Advance Manufacturing has 8.2 million shares of common stock outstanding. The current share price is $50, and the book value per share is $8.
The impact of service satisfaction with bank performance : Anna Johnson is president of a bank with several branches. Anna has been exploring the impact of service satisfaction with bank performance
Develop an estimation plan for project cost : Develop an estimation plan for project cost, schedule, staff requirements and at least one other resource. Describe the methods/tools/techniques to be used.
How does the government collect taxes : Consider an economy in the short run with the price level P fixed at 1. Other relevant information is:
How does professional responsibility influence your work : How do you define professionalism and how does professional responsibility influence your work? Is it important to you that leaders exercise professional.
What is your agenda and outcomes for this meeting : You were recently hired as the project manager for an IT implementation project for a growing company that needs an entire IT overhaul.
Graph the supply and demand curves : a. Graph the supply and demand curves and find equilibrium wages and labor.
Think more about short-term gratification : Are these formats going to create problems if they prime us to think more about short-term gratification and less about the long-term hit to our budgets?

Reviews

Write a Review

Business Management Questions & Answers

  Analyze the connection between corporate governance

Analyze the connection between corporate governance and a company's cybersecurity posture. Provide at least three (3) points to justify whether or not there is an impactful relationship between corporate governance and a company's cybersecurity po..

  Description of the organization and its primary stakeholders

A description of the organization and its primary stakeholders. Include the vision and mission statement if they are available to the public, and the code of ethics if the company has one

  Cross cultural negotiation stagesdescribe each stage of the

cross cultural negotiation stagesdescribe each stage of the negotiation process and the role that culture plays in each

  Computer aided design

Please go to YouTube Video site and find a video that pertains to one of the following topics:

  Explain managing human resource project

Explain Managing Human Resource Project- Estimate the importance of understanding the numerous stages of the project life cycle and its possible contributions to a project.

  Describe an example of how social media

Describe an example of how social media (e.g. Twitter, Facebook, YouTube, etc.) was used to communicate with the public before, during or after an emergency or disaster.

  Use winters method to forecast one quarter ahead revenues

Use Winter's Method to forecast one-quarter-ahead revenues for Wal-Mart.- Use Winter's Method to forecast one-quarter-ahead revenues for Coca-Cola.

  Write turing machine that adds one to n in decimal notation

Write a Turing Machine that adds 1 to n in decimal notation. (Obviously the alphabet here must include 0,1,. . . ,9 as well as any other symbols you want).

  Cobb-douglas production function

Show that if this is true (ie that both factors of production are 'rewarded' according to their marginal products) and we add together the total value of real income to all units of labour and the total value of real income to all units of capital..

  Capability to the business continuity team

Develop a program to add capability to the business continuity team. What basic components of this plan would you emphasize?

  Describe briefly the budgeting process

Describe briefly the budgeting process and how project budgets can be monitored. And complete your response to the discussion by including the equations.

  Explain professional life

There will come a day in the professional life that there will be a client that pushes every button you have as well as some you don't. We tend to go in to the area of repetition in which we have some unresolved issues.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd