How will the tax cut affect government revenues

Assignment Help Microeconomics
Reference no: EM13243533

Assuming that overall taxes are cut by 10 percent across theboard.
What's likely to happen to equilibrium output and prices? How will the tax cut affect government revenues in the new equilibrium?

Reference no: EM13243533

Questions Cloud

The expression of the change in a products quantity : Show that the expression of the change in a product's currentequilibrium quantitty due to a unit change in the product'sexpected future price is: dQ = (SpDpe - DpSpe)dP / (Sp-Dp) where Sp and Dp are partialderivatives with respect to current price
What volume of hydrogen gas is produced when iron reacts : What volume of hydrogen gas is produced when 68.4 g of iron reacts completely according to the following reaction at 25 C and 1 atm iron (s) + hydrochloric acid (aq)--------- iron(II) chloride (aq) + hydrogen (g)
What is the cannonball''s velocity : What is the cannonball's velocity at the highest point in the trajectory, How long does it take to get to this point
Ajax cleaning products is a medium-sized firm operating : Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm Tile King. Ajax produces a multi-headed tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as..
How will the tax cut affect government revenues : Assuming that overall taxes are cut by 10 percent across the board. What's likely to happen to equilibrium output and prices How will the tax cut affect government revenues in the new equilibrium
What change do to disposable income and consumption : assuming that overall taxes are cut by 10 percent across the board. What will this change do to disposable income, consumption, and the multiplier
Calculate the electric field and then calculate its radient : Calculate the electric field from four point-charge: +q at -d and -q at -d/2; 2q at d and -2q at d/2 on the z-axis, First calculate the electric potential, and then calculate its radient.
Calculate the power output of each resistive element : The power output of a circuit is given by: P = i^2R = V^2/R = iV, Calculate the power output of each resistive element when a potential of 12 volts is applied
Whats the optimal consumption under the constraint : 1. How many glasses of brandy and cigars are consumed during andevening 2. Now the sum of brandy and cigars consumed in the day isless than or equal 5. What's the optimal consumption under this constraint

Reviews

Write a Review

Microeconomics Questions & Answers

  When the price of a superior good increases

When the price of a superior good increases, consumers demand more of it. As consumer income increases a larger percentage of that income is spent on superior goods.

  What is the effect on the price level and real gdp

Starting from short-run equilibrium, the following occurs: personal income taxes rise and foreign real national income rises. What is the effect on the price level, Real GDP, and the unemployment rate in the short run

  Are the indifference curves are both convex

The utility function is U = U (X, Y) If the 2nd derivative for both x and y is greater then 0, does that mean the indifference curves are both convex? Explain why or why not.

  Computing minimum value of avc

Consider the price-taking firm in competitive industry for raw chocolate. The market demand and supply functions for raw chocolate are estimated to be

  What might shift the aggregate-demand curve

What might shift the aggregate-demand curve to the left Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.

  Kind of automobiles manufactured by hyundai

Discuss the prospects for demand for the kind of automobiles manufactured by Hyundai in two countries: China and Turkey.

  Draw the total market demand curve

Draw the total market demand curve. Label the axes and intercepts. Discuss how the price elasticity of demand changes along the demand curve.

  Describe the consumption possibilities

Amin consumes two goods: X and Y. M is his monetary income, while Px & Py represent the prices of goods X and Y, respectively. Assume that X is an inferior good while Y is a normal good.consumption possibilities, for the quantities of Y consumed

  Maximizing revenue-determining demand

Shoes For Less (SFL) hires you to estimate the demand for their shoes, and you estimate this to be: Describe  the difference in the results between your results and those of original consultant.

  Demonstrate how a minimum wage affects the unskilled labor

Walmart is vilified by many people as being evil, destroying jobs and cities. Others note that it has the lowest prices and is the largest employer in the country. What is the difference? Is Walmart a monopsonist? Demonstrate how a minimum wag..

  How and why does it differ from the original is curve

According to the life-cycle / permanent-income hypothesis, consumption depends on the present discounted value of income. An increase in the real interest rate will make future income worth less, thereby reducing the present discounted value and r..

  Kinds of intervention of the fed in foreign exchange market

The money supply of a country equals the sum of monetary base times the money multiplier. Monetary base equals the sum of domestic reserves and foreign reserves. Domestic reserves include the domestic government securities. The foreign reserves in..

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