What arguments might be used to oppose such a tax cut

Assignment Help Management Theories
Reference no: EM13657556

Suppose that the government of Lumpland is enjoying a fat budget surplus with fixed government expenditures of G=150 and fixed taxes of T= 200. Assume that consumers of Lumpland behave as described in the following consumption function: C=150+.75(Y-T) Suppose further that investment spending is fixed at 100. Calculate the equilibrium level of GDP in Lumpland. Solve for equilibrium levels of Y, C, and S. Next assume that the Republican Congress in Lumpland succeeds in reducing taces by 20 to a new fixed level of 180. Recalculate the equilibrium levels of Y, C, and S after the tax cut and check to ensure that the multiplier worked. What arguments are likely to be used in support of such a tax cut? What arguments might be used to oppose such a tax cut?

Reference no: EM13657556

Questions Cloud

How does headphones work in ac bridges in null detection : How does headphones work in ac bridges in null detection?
What genre a midsummer nights dream : This is just a short Shakespeare question - I want to know what genre A Midsummer Night's Dream is. I've looked it up on the internet but I keep getting different answers. Please only answer this if you know for sure.
Explain the major species of potassium hexacyano-ferrate : Explain what are the major species of potassium hexacyano-ferrate (III) when dissolved in water? Define what are the two major species in highest concentration
Find what are the wavelength and the amplitude of this wave : A wave travels along a stretched string. The vertical distance from crest to trough for this wave is 15 centimeter, Find what are the wavelength and the amplitude of this wave
What arguments might be used to oppose such a tax cut : What arguments might be used to oppose such a tax cut?
Find what rate of change of the magnetic field : A 100 turn coil has a radius of 3.2 centimeter and a resistance of 25Ω. Find what rate of change of the magnetic field strength is required if the magnetic field creates an angle of 20 degree with the normal to the plane of the coil
Function of magical realism : Read Gabriel Garcia Marquez's short stories and wondering if anyone could assist me understand the function of magical realism in "A very old man with enormous wings".
Explain acetone is a good extraction solvent for plant : Explain Acetone is a good extraction solvent for plant pigments as it breaks down cell walls and is miscible with the pigments. Can you be sure that merely extracted chlorophyll-a from your spinach leaf
Self-made man : Franklin is a "self-made man." Explain what uniqueness is important for this and what episodes in his trip from Boston to Philadelphia show these qualities?

Reviews

Write a Review

Management Theories Questions & Answers

  What tools could be used for decision-making

What tools could be used for decision-making?

  A communication management plan address

What items should a communication management plan address?

  Managing a small cross-functional project team

Managing a small cross-functional project team of 15 individuals (including yourself) in a pharmaceutical company. The team composition is:Three pharmaceutical chemists

  He relationship has been mutually profitable

Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. The relationship has been ..

  Relationships are expressed in the terms of collective agree

Introduction:In this assignment you will analyse collective bargaining relationships and document how these relationships are expressed in the terms of collective agreements

  How can a transformational experience influence

Describe your transformational experience and explain how you were changed and transformed as a result of this experience - Summarise the leadership lessons that you have learned as a result and how you can apply them in your personal and professio..

  1 streets in bellevue are maintained by public works

1. streets in bellevue are maintained by public works division street maintenance. public works administrators are

  Computer crime has become a serious matter for your

compare and contrast the mis in place in two distinctly different organizations.nbspcompare each organizations usenbsp

  Ruby has owned and rented

Ruby has owned and rented a residential property since 2008. Rental income for the current year is $15,000. During the year the company replaced the old kitchen fittings, including cupboards that had deteriorated through water damage and wear and tea..

  Discuss the future direction of information systems security

Discuss the future direction of information systems security? where do you think the security go in future and why?

  Use the idea of a daily coupon for promotion

Use the idea of a daily coupon for promotion

  Explain how to manage potential issues

Explain how to manage potential issues that may arise while building your diverse workforce and propose solutions to ease the transition within your scenario organisation. Submit your training session as a PowerPoint Presentation, with presenter n..

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