Business, 29.10.2019 06:31 catsareokiguess

Assume that production in the united states is valued at $200,000. national income is therefore $200,000. of their income, workers save $8000, pay $12,000 in taxes, spend $174,000 on consumer goods, and spend $8,000 on imports. businesses spend $10,000 in new investment spending. foreigners spend $6,000 on exports. to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:

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Answer from: SmokeyRN

To avoid any problems of inflation or unemployment, the government should have a budget deficit of $6,000.

Explanation:

National income (Y) = $200,000

Consumption expenditure (C) = $174,000

Investment (I) = $10,000

Net exports (NX) = Exports - Imports = $6,000 - $8,000 = $2,000

we know that,

Y = C + I + G + NX

$200,000 = $174,000 + $10,000 + G - $2,000

G = $200,000 + $2,000 - $174,000 - $10,000

G = $18,000

So, government purchases is $18,000.

It has been provided that workers had paid $12,000 in taxes. This means, the government revenue is $12,000.

Government has spent $18,000 but has collected only $12,000 as taxes. Since, government expenditure exceeds government revenue (tax collection), there will be budget deficit.

Budget deficit = Government expenditure - Government revenue = $18,000 - $12,000 = $6,000

Therefore, to avoid any problems of inflation or unemployment, the government should have a budget deficit of $6,000.

Answer from: Quest

Ino me gusta cuando no tengo whats de los demás pero me siento tan cerca a la realidad

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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