Provide the cyclical nature of government tax revenues

Assignment Help Macroeconomics
Reference no: EM1334957

Budget deficit or surplus vary over the business cycle

One alternative to balancing the budget annually or cyclically is to produce a government budget that would be balanced if the economy were at potential output. Given the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle?

 

Reference no: EM1334957

Questions Cloud

A conflict between being the primary portal in the usa : Is there a conflict between being the primary portal in the USA and selling data?
Issues-decision making methodologies and client strategies : What types of issues can interfere with the client's ability to understand fully his or her wants?
Elucidate the impact of an increase in production technolog : In the Keynesian, Classical, as well as Solow model, Elucidate the impact of an increase in production technology
Explain and identify the four ps of the marketing mix : Explain and Identify the four Ps of the marketing mix as they relate to your purchase
Provide the cyclical nature of government tax revenues : Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
Explain product failure : Explain Product failure and DailyFinance is a consumer finance site that helps consumers manage their money and understand
Analysis of decision making strengths and weaknesses : Choose a decision Making Methodology. Provide a brief explanation of the steps involved, the types of decisions that could be made using it, and a brief analysis of its strengths and weaknesses.
Describe the pros and cons : List and explain the pros and cons of being a technological leader as a functional strategy.
Discuss the evolution of the federal reserve system : Discuss the evolution and responsibilities of the Federal Reserve System. What circumstances promulgated both the development and composition of the system.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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