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they go up
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What happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
What term represents the amount of money the government is spending over what if is receiving in taxes?
deficit
This term represents the amount of money the government spending over what it is receiving in taxes?
deficit
What term represents the amount of money the government is spending over what it is receiving in taxes.?
deficit
This term represents the amount of money the government is spending over what it is receiving in taxes.?
deficit
What happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
What is most likely to occur after the government increases taxes?
It reduces the money available for private sector spending.
What happens to aggregate demand if government spending on infrastructure increases?
The Aggregate demand will shift to the right. this is because the output increases as well as the price level. When taxes decrease, it causes the shift. Th short run and Long run will also increase
How do government priorities affect government spending?
taxes
How government gets money for its spending?
Taxes.
If the government increases taxes and everything else remains constant?
If the government increases taxes, and everything else remains constant:
What happens to net personal income when the government lowers taxes?
your net income increases, but your income tax decreases
What happens to net personal income when government lowers taxes?
your net income increases, but your income tax decreases
What branch of government has the power to increase or decrease taxes?
The Legislative Branch of government make law in taxation, that is, taxation regulations, taxations budget, taxations spending, taxations increases and decreases.
If Marginal propensity to consume of 06 and a marginal propensity to import of 02 the government increases its spending by 2 billion and raises taxes by 1 billion what happens to equilibrium income?
The equilibrium income would increase 1.06 billion dollars.
Why would a government choose to spend more money than it collects in taxes during a recession or a depression?
Spending increases demand and can encourage economic growth.
What is example of a fiscal policy?
There are unlimited examples. It only depends upon the imagination of the politics:A reduction (or an increase) on income tax.An extension in the unemployment benefits.A check for mums when they have a baby.Increasing taxes to pay for greater military spending.Raising taxes in order to cover a budget deficit.
