Transfer payments are NOT included in government's:

In country X, short-run equilibrium output equals 250 000 and the income-expenditure multiplier equals 5. If autonomous government purchases now increase by 1000, short-run equilibrium output will change from 250 000 to ____.

Using the tax rates in the following table, what is the average tax rate for a person earning $120,000 per year who paid $35,850 to the government as

If the government is forewarned about a future increase in its spending, a sensible

The equation describing equilibrium real GDP for a four-sector economy is given by:

where k is the relevant multiplier.  Which of the following is the correct form for k?

The concept that government spending has to be financed either by raising taxes or borrowing is

At the beginning of 2018 the country of Rohan has government debt of $200 million and the real interest rate on this debt is constant and equal to 5 percent per annum.  At the end of 2018 the government intends to repay all government debt and interest. If the government can raise tax revenue of $350 million during 2018, what is the maximum level of government purchases and transfer payments (in millions) it can make in 2018? 

One of the powerful arguments for why governments might avoid policies that accumulate a large

One of the considerations for fiscal policy makers thinking about stabilisation policy is the need to:

In the country of Ausmaila the working age population is 20 million, the participation rate is 80 percent, and employment is 14 million. The Bureau of Statistics for Ausmaila estimates that cyclical unemployment is 1,200,000 and frictional unemployment is 250,000. What is the natural rate of unemployment in Ausmaila?