Have a question?
Message sent Close

Unit 3 chapter 17 and 15 Answers | Macroeconomic Analysis (ECON 102)

Instructor
Sandra Watson
0
0 reviews
  • Description
  • Full Document
Blur-Preview

Unit 3 questions for chapter 17 and 15-what do goods like gasoline, tobacco, and alcohol typically share in common?

Principles of Macroeconomic Analysis (ECON 102)

Chapter 17 Questions

1. A __________________________ policy will cause a greater share of income to be
collected from those with high incomes than from those with lower incomes.

2. A government annually collects $230 billion in tax revenue and allocates $29 billion to
its universal healthcare spending. What percentage of this government’s budget is
spent on healthcare?

3. A typical ________________________ fiscal policy allows government to decrease the
level of aggregate demand, through increases in taxes.

4. When a country’s economy is producing at a level that exceeds it potential GDP, the
standardized employment budget will show a ________________ than the actual
budget.

5. A government collects $600 billion annually in tax revenue. Each year it allocated $35
billion to healthcare and $50 billion for education. What percentage of annual tax
revenue is allocated to these two categories of government spending?

6. If government tax policy requires Bill to pay $20,000 in taxes on annual income of
$200,000 and Paul to pay $10,000 in tax on annual income of $100,000 then the tax
policy is:

7. The current level of US government accumulated debt, when measured in nominal
dollars:

8. At the beginning of 2009, a government had a total debt of $540 billion dollars. It ended
2009 with a $6 billion dollar budget surplus. In 2010, its budget surplus reached $8
billion dollars. What is the total debt of the government equal to at the end of 2010?

9. At the beginning 2010, the government of Norway had no debt and held $180 billion
dollars in its sovereign fund. To stimulate its economy during 2011, Norway’s
government plans to spend $35 billion more than it will collect in tax revenue and in
2012, its spending will exceed tax revenues by $25 billion. What will the total
government debt equal at the end of 2012?

10. If South Dakota’s governor reports a budget surplus in 2011, that state government
likely:

11. In 2009, the U.S. government spent $1.4 trillion more than it collected in taxes. This
deficit was about:

12. A government annually collects $320 billion in tax revenue and allocated $42 billion to
educate spending. What percentage of this government’s budget is spent of education?

13. If individual income tax accounts for more total revenue than the payroll tax in the U.S.,
why would over half the households in the country pay more in payroll taxes than in
income taxes?

14. A consensus estimate based on a number of studies suggests that if there is an
increase in a budget deficits (or a fall in a budget surplus) by 1% of GDP, it will most
likely cause which of the following?

15. A government collects $70 billion quarterly in tax revenue. Each year it allocates $15
billion to the justice system and $29 billion for the administrative costs. What
percentage of its total annual tax revenue is left for allocations to the remaining
categories of government spending?

16. By June, 2010, the U.S. government owed $13.6 trillion dollars _______, that, over
time, has remained unpaid.

17. if government tax policy requires Jane to pay $25,000 in taxes on annual income of
$200,000 and Mary to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

18. When the government passes a new law that explicitly changes overall tax or spending
levels, it is enacting:

19. What do goods like gasoline, tobacco, and alcohol typically share in common?

20. A ______________________ is created each time the federal government spends more
than it collects in taxes in a given year.

21. If the government for the state of Washington collects $65.8 billion in tax revenues in 2013
and total spending in the same year is $74.8 billion, the result will be:

22. During a recession, if a government uses an expansionary fiscal policy to increase GDP,
the:

23. If an economy moves into a recession, causing that country to produce less than potential
GDP, then:

24. When the share of individual income tax collected by the government from people with
higher incomes is smaller than the share of tax collected from people with lower incomes, then
the tax is:

25. The federal government levies _______________on people who pass assets
_________________, either after death or during life.

26. A government annually allocates $5 billion of its total tax revenue to weather related
disaster relief, $21 billion to healthcare and $11 billion to education. If the government’s
quarterly tax revenue is $33 billion, what percentage of its budget is allocated annually to
healthcare?

27. If Canada’s economy moves into an expansion while its economy is producing more than
potential GDP, then:

28. When inflation begins to climb to unacceptable levels in the economy, the government
should:

29. If the economy is producing less than its potential GDP, _____________________ will
show a larger deficit than the actual budget.

30. A government collects $700 billion annually in tax revenue. Each year it allocates $70
billion to the justice system and $130 billion for its own administrative costs. What percentage
of annual tax revenue is allocated to these two categories of government spending?

31. A government collects $700 billion annually in tax revenue. Each year it allocates $130
billion to interest payments that it must pay on its accumulated debt. What percentage of
annual tax revenue is allocated to make these interest payments?

32. Assume that laws have been passed that require the federal government to run a
balanced budget. During a recession, the government will want to implement __________, but
may be unable to do so because such a policy would ______________.

33. If government tax policy requires Peter to pay $15,000 in tax on annual income of
$200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:

34. When increasing oil prices cause aggregate supply to shift to the left, then:

Chapter 15 Questions

1. Which of the following is described as an innovative and nontraditional method used by
the Federal Reserve to expand the quantity of money and credit during the recent U.S.
recession?

2. According to the basic quantity equation of money, if price and output fall while velocity
increases, then:

3. Atlantic Bank is required to hold a 10% of deposits as reserves. If the central bank
increases the discount rate, how would Atlantic Bank respond?

4. If you were to survey central bankers from around the world and ask them what they
believe the primary task of monetary policy should be, what would the most popular
answer most likely be?

5. If nominal GDP is 2700 and the money supply is 900, what is velocity?

6. Which of the following is a traditional tool used by the Fed during recessions?

7. If the economy is at equilibrium as shown in the diagram, then an expansionary monetary
policy will

7. When a central bank makes a decision that will cause an increase in both the money
supply and aggregate demand, it is:

8. If the economy is at equilibrium as shown in the diagram, then a contractionary
monetary policy will:

9. When a Central Bank takes action to decrease the money supply and increase the
interest rate, it is following:

10. A central bank that wants to increase the quantity of money in the economy will

11. In good economic times, a surge in lending exaggerates the episode of economic
growth. Which of the following adaptations of monetary policy can moderate these
exaggerated effects?

12. When the Central Bank acts in a way that causes the money supply to increase while
aggregate demand remains unchanged, it is

13. When banks hold excess reserves because they don’t see good lending opportunities

14. if the original level of aggregate demand is AD0, then an expansionary monetary policy
that shifts aggregate demand to AD1 will only

15. A central bank that desires to reduce the quantity of money in the economy can

16. When the central bank lowers the reserve requirement on deposits:
a. the money supply increases and interest rates decrease

 

PREVIEW

 

Macroeconomic Analysis (ECON 102) Unit 3 chapter 17 and 15

NOTE: Please check the details before purchasing the document.

error: