Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The government in the cross model
Net taxes NT(Y) depends positively on real GDP in the cross model
In this model when national income increases, amount individuals pay in income taxes will increase. This is since income tax is specified as a percentage of total income. Other taxes may also increase when Y increases. Though government transfers to households will decrease. Thus net taxes NT will increase when Y increases.
Albeit NT depends on Y, is still under the control of government. NT may change even if Y doesn't change. This means that NT is part exogenous (as it may be controlled by the government) and part endogenous (as it would automatically change when Y changes). Thus we write NT(Y) but we should remember the exogenous nature of net taxes. Government savings, which is also part exogenous and partendogenous, depends positively on Y and we write:
SG(Y) = NT(Y) - G
Assume that an economy's GDP Y=5000. Also assume that the government runs a deficit where tax revenue T=1000 and government expendituresG= 1500. The consumption function is represe
An economy's IS and LM curves are given by the following equations: with Y indicating output (income), c indicating the marginal propensity to consume, I investment, G gove
what does a weaker dollar to a) raise inflation and contract the economy b) reduce inflation and contract the economy c) raise inflation and expand the economy d) reduce inflation
discuss the different of cost?draw the cost curves
Equilibrium and Disequilibrium In physical sciences, equilibrium is a state of balance between opposing forces or actions. The meaning of equilibrium in economic theory is exa
Show the market for cigarettes paying particular attention to the price elasticity of demand and supply. What would happen to the total expenditure on cigarettes if there was a tax
Effective Demand The concept of effective demand is the logical starting point of Keynes Theory of Employment. Effective demand manifests itself in the aggregate expenditure of
what is the cause of inflation in PNG
Suppose that an investment tax credit is stated to be temporary in nature, and the credit will be 10% on newly acquired capital (investment) equipment and will last just one year o
how can we derive IS curve why has it negative slope
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd