You have some estimates of national accounts numbers for a closed economy for the coming year. Under one set of expectations, government purchases will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Under another set of expectations, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 million,
and investment will be $40 billion. Based on these numbers in the first case there should be a
a. $15 billion surplus, and in the second case a $10 billion surplus.
b. $15 billion surplus, and in the second case a $30 billion deficit.
c. $5 billion surplus, and in the second case a $10 billion deficit.
d. $5 billion surplus, and in the second case a $30 billion deficit.
c
You might also like to view...
________ is the amount of money a government collects through a tax
A) Tax incidence B) Tax bracket C) Tax revenue D) Tax burden
A "primary market" is a market
A) for government securities. B) in which newly issued claims are sold to buyers by borrowers. C) in which newly issued claims are sold by savers to borrowers. D) for debt by large or "primary" corporations.
If you enjoy playing golf, the opportunity cost of cleaning your room
a. is the same on sunny days as it is on rainy days b. is greater on sunny days than it is on rainy days c. is smaller on sunny days than it is on rainy days d. does not change with the weather conditions e. is equal to the opportunity cost of any other chore you have to do that day
The Board of Governors of the Fed consists of: a. seven elected members
b. seven members appointed by the president. c. a representative from each of the 12 district banks. d. 12 elected members. e. 12 members appointed by the president.