1. Given the following information, what can you say about the US's budget? # 1 2...
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1. Given the following information, what can you say about the US's budget? # 1 2 3 Tax revenue 1100 1600 1800 Government Expenditure 10% 12% 22% 24% 2. 2022 US Federal Income Tax Brackets and Rates for Single Filers Tax Rate For Single Filers $0 to $10,275 $10,275 to $41,775 $41,775 to $89,075 $89,075 to $170,050 $170,050 to $215,950 $215,950 to $539,900 $539,900 or more. 32% 1400 35% 37% 1600 1600 US Budget US Debt a) What type of taxes do we have in the US? b) If a single taxpayer earns $150,000 annually, what is his or her marginal tax rate and tax amount? 3. Graphically represent the changes in the financial market because of an increase in the US budget deficit. 4. The graphs below show the AD-AS diagram for the US. Graph A 1200 1100 1000 900 Price Level صيد cerch 800 700 600 500 400 300 200 100 inks AD SRAS LRAS 0 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Real GDP 1200 1100 1000 Price Level 900 800 700 600 500 400 300 200 100 AD SRAS a) What type of the GDP gap is observed in the graph A? b) What type of the GDP gap is observed in the graph B? c) What type of fiscal policy should the government of the US be implementing to bring the economy to the long-run equilibrium? For A Graph B For B d) For A, only 50% of the additional income was spent (MPC-0.50) and government expenditure increased by 100 million. Calculate expenditure multiplier and changes in total output in the economy. LRAS 0 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Real GDP e) For B, suppose that the government expenditure multiplier equals to 6. By how much should the government decrease government expenditures (G) in order to close the gap? 1. Given the following information, what can you say about the US's budget? # 1 2 3 Tax revenue 1100 1600 1800 Government Expenditure 10% 12% 22% 24% 2. 2022 US Federal Income Tax Brackets and Rates for Single Filers Tax Rate For Single Filers $0 to $10,275 $10,275 to $41,775 $41,775 to $89,075 $89,075 to $170,050 $170,050 to $215,950 $215,950 to $539,900 $539,900 or more. 32% 1400 35% 37% 1600 1600 US Budget US Debt a) What type of taxes do we have in the US? b) If a single taxpayer earns $150,000 annually, what is his or her marginal tax rate and tax amount? 3. Graphically represent the changes in the financial market because of an increase in the US budget deficit. 4. The graphs below show the AD-AS diagram for the US. Graph A 1200 1100 1000 900 Price Level صيد cerch 800 700 600 500 400 300 200 100 inks AD SRAS LRAS 0 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Real GDP 1200 1100 1000 Price Level 900 800 700 600 500 400 300 200 100 AD SRAS a) What type of the GDP gap is observed in the graph A? b) What type of the GDP gap is observed in the graph B? c) What type of fiscal policy should the government of the US be implementing to bring the economy to the long-run equilibrium? For A Graph B For B d) For A, only 50% of the additional income was spent (MPC-0.50) and government expenditure increased by 100 million. Calculate expenditure multiplier and changes in total output in the economy. LRAS 0 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Real GDP e) For B, suppose that the government expenditure multiplier equals to 6. By how much should the government decrease government expenditures (G) in order to close the gap?
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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