For all the questions below select the appropriate answer: a) Other things constant, if the government cuts the net tax

[answerhappygod]

For All The Questions Below Select The Appropriate Answer A Other Things Constant If The Government Cuts The Net Tax 1 (84.19 KiB) Viewed 20 times

For all the questions below select the appropriate answer: a) Other things constant, if the government cuts the net tax rate, lowering NT from NT = toY to NT = t₁Y we would expect: an increase in the slope the aggregate expenditure curve. a decrease in the slope of the aggregate expenditure curve. a movement down and along the aggregate expenditure curve. an upward shift of the aggregate expenditure curve. Real GDP C I G NT X IM 0 100 150 75 0 50 0 100 175 150 75 10 50 25 200 250 150 75 20 50 50 400 400 150 75 40 50 100 Based on the data for an open economy in the table presented: O the multiplier is 3.6 and equilibrium real GDP is 757. O the multiplier is 1.7 and equilibrium real GDP is 652. the multiplier is 4.0 and equilibrium real GDP is 425. O the multiplier is 2.4 and equilibrium real GDP is 908. c) The multiplier associated with a balanced change in the government's budget: O is unknown. O is equal to zero since the change in government expenditure is offset by and equal change in tax revenue. O is the same as the investment multiplier because both government expenditure and investment expenditure are autonomous. O is positive because households change their consumption expenditure by less than the change in their tax payments. d) In an open economy with imports described by the import function: IM = 0.25Y and exports equal to X = 250: exports would be greater than imports at all levels of GDP. O in a diagram the net export function would have a vertical intercept of 250 and a slope (AIM/AY) of - 0.25. O if real GDP were 1600 net exports would be zero. the net export function would be NX = 250+ 0.25Y. b)