1. Government spending in Robok is $140 billion, and its only tax is an income tax with a marginal tax rate of 0.2.

a. The balance on the government's budget at a GDP level of $450 billion is a (Click to select) deficit surplus of $ billion.

b. The balance on the government's budget at a GDP level of $800 billion is a (Click to select) deficit surplus of $ billion.

c. At what level of GDP will the economy of Robok have a balanced budget?

Robok will have a balanced budget at a GDP level of $ billion.

Answer rating: 100% (QA)

a The balance on the governments budget at a GDP level of 450 billion is a Click to select deficit s... View the full answer