help draw the diagrams M Consider a government's budget balance. a. Define the budget balance. Suppose G

help draw the diagrams

 

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M Consider a government's budget balance. a. Define the budget balance. Suppose G = 120, t = .15. b. If national income is 400, compute the budget balance. Is the government experiencing a budget surplus or a budget deficit? Explain. c. If national income is 1000, compute the budget balance. Is the government experiencing a budget surplus or a budget deficit? Explain. d. Draw the budget balance as a function of national income. e. For what level of national income is the budget balanced? Suppose G rises to 180. f. If national income is 400, compute the budget balance. h. On the same diagram, draw the budget balance as a function of national income when G = 180. Comment. g. If national income is 1000, compute the budget balance. i. For what level of national income is the budget balanced? Back to the original model, suppose the tax rate rises to .25. j. If national income is 400, compute the budget balance. k. If national income is 1000, compute the budget balance. I. On the same diagram, draw the budget balance as a function of national income when G = 120. Comment. m. For what level of national income is the budget balanced? M Consider a government's budget balance. a. Define the budget balance. Suppose G = 120, t = .15. b. If national income is 400, compute the budget balance. Is the government experiencing a budget surplus or a budget deficit? Explain. c. If national income is 1000, compute the budget balance. Is the government experiencing a budget surplus or a budget deficit? Explain. d. Draw the budget balance as a function of national income. e. For what level of national income is the budget balanced? Suppose G rises to 180. f. If national income is 400, compute the budget balance. h. On the same diagram, draw the budget balance as a function of national income when G = 180. Comment. g. If national income is 1000, compute the budget balance. i. For what level of national income is the budget balanced? Back to the original model, suppose the tax rate rises to .25. j. If national income is 400, compute the budget balance. k. If national income is 1000, compute the budget balance. I. On the same diagram, draw the budget balance as a function of national income when G = 120. Comment. m. For what level of national income is the budget balanced?