1. Fill in the missing information wherever there is a question mark.
2. Consumption is $6 trillion, investment is $2 trillion and government purchases are $2.5 trillion. The country exports $1 trillion and imports $1.5 trillion. Find net exports and solve the level of aggregate demand.
3. Answer True or False for each of the following
In the real world, government spending is independent of income levels.
Most Americans actually pay more to Social Security/Medicare than income taxes.
Excise taxes are proportional because everyone pays the same amount.
Tax rates in the US are higher than is usual among developed countries.
Progressive taxes are based on the ability to pay principle.
In an open economy aggregate demand or aggregate expenditures is C + I + G.
A trade deficit lowers the demand for a country's goods.
The US has not run a trade surplus for over 20 years.
The US is the world's largest exporter but not the world's largest importer.
Trade makes up a larger percentage of the US economy than a couple of generations ago.
1. Fill in the missing information wherever there is a question mark.
2. Consumption is $6 trillion, investment is $2 trillion and government purchases are $2.5 trillion. The country exports $1 trillion and imports $1.5 trillion. Find net exports and solve the level of aggregate demand.
3. Answer True or False for each of the following
In the real world, government spending is independent of income levels.
Most Americans actually pay more to Social Security/Medicare than income taxes.
Excise taxes are proportional because everyone pays the same amount.
Tax rates in the US are higher than is usual among developed countries.
Progressive taxes are based on the ability to pay principle.
In an open economy aggregate demand or aggregate expenditures is C + I + G.
A trade deficit lowers the demand for a country's goods.
The US has not run a trade surplus for over 20 years.
The US is the world's largest exporter but not the world's largest importer.
Trade makes up a larger percentage of the US economy than a couple of generations ago.
Related textbook solutions
Related questions
1. If government tax policy requires Jane to pay $28,000 in taxes on an annual income of $200,000 and Mary to pay $10,000 in tax on the annual income of $100,000, then the tax policy is:
|
regressive. |
||
|
progressive. |
||
|
proportional. |
||
|
optional. |
2. When increasing oil prices cause aggregate supply to shift to the left, then:
|
unemployment and inflation decrease. |
||
|
unemployment decreases and inflation increases. |
||
|
unemployment and inflation increase. |
||
|
unemployment increases and inflation decreases. |
3. What do goods like gasoline, tobacco, and alcohol typically share in common?
|
A progressive tax is imposed on each of them. |
||
|
A regressive tax is imposed on each of them. |
||
|
They are all subject to government excise taxes. |
||
|
They are all subject to government fiscal taxes. |
4. When inflation begins to climb to unacceptable levels in the economy, the government should:
|
use contractionary fiscal policy to shift aggregate demand to the right. |
||
|
use contractionary fiscal policy to shift aggregate demand to the left. |
||
|
use expansionary fiscal policy to shift aggregate demand to the right. |
||
|
use expansionary fiscal policy to shift aggregate demand to the left. |
