What happens to total tax revenue collected

Assignment Help Business Economics
Reference no: EM132173726

Suppose total tax revenue collected is proportional to output, e.g. (T = tY, where t is the tax rate, and Y is GDP). Owing to the positive IS shock, what happens to total tax revenue collected?

Reference no: EM132173726

Questions Cloud

Describe the relationship between government bonds : Describe the relationship between government bonds, the outstanding national debt, and monetary policy.
Draw the impacts of a decrease in defense : On an AD/AS graph, draw the impacts of a decrease in defense spending and an increase in the corporate tax rate. What happens to real GDP and the price level?
How many years will it take for east quippanova : How many years will it take for East Quippanova to catch up to the real per capita GDP of West Springfield?
What strategic initiatives did howard schultz : What strategic initiatives did Howard Schultz put in place to re-create Starbucks' uniqueness after his return in 2008?
What happens to total tax revenue collected : Suppose total tax revenue collected is proportional to output, e.g.
Describe a good or service that might have a price : Describe a good or service that might have a price elasticity of around 0.7 (you don't need to look something up, you just need to justify why the good you
Discriminate price in the markets : Suppose that a monopolist faces two markets with demand curves
What is a definition of externalities : What is a definition of externalities. How does the presence of an externality distort a normal free market?
Price of a firm fixed input rises : Suppose the price of a firm's fixed input rises. If it decides to maintain its production level, its average costs are lower in the long-run

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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