Net taxes affect consumption via disposable income. Do you think that new taxes could affect any of the other components of aggregate expenditures? If yes, explain how.
Net taxes affect consumption via disposable income. Do you think that new taxes could affect any of the other components of aggregate expenditures? If yes, explain how.
Related textbook solutions
Related questions
Suppose the following table shows some national accounting data for a given year for some particular country.
Table 1 national accounting data
|
Amount (billions of dollars) |
Quantity demanded |
|
Consumption of fixed capital |
280 |
|
Gross private domestic investment |
900 |
|
Government consumption expenditures |
520 |
|
Government investment expenditures |
200 |
|
Imports |
580 |
|
Exports |
680 |
|
Household consumption expenditures |
3105 |
|
Net property income paid overseas |
20 |
1.What is the country's current account balance? What is the country's gross national saving?
2.Explain how net exports affect the economy. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other spending components of GDP?
