Archive for October, 2001
C Tax Calculation Program
October 31st, 2001
C Tax Calculation Program
Question: Economics government budget help calculation?
The following data gives a complete picture of the household, business, and government sectors for 2006 in the new independent small nation of Ossetia. (all figures are in the billions)
Government purchases$50
Capital stock (end of 2005)$100
Capital stock (end of 2006)$103
Changes in inventories$0
Government welfare payments$5
Government unemployment insurance programs$2
Government payroll$3
Government outlays for materials$2
Depreciation$7
Interest rate6%Assuming the government budget for 2006 was in balance, (G=T), calculate each of the following (in order)
a. Government purchases.
b. Net Taxes.
c. Total Planned Investment.
d. Real GDP.
e. Total saving.
f. Total Leakages.
g. Total Injections.
Answer: Economy without private consumption?
a. Government purchases = $50 (given at first place)
b. Net Taxes = 0 (from statement what G=T thus balanced budget and no deficit or surplus)
c. Total Planned Investment = Gross Real Investment = I = 103+7 = 110
d. Real GDP = C+I+G = 0+110+50 = 160
e. Total saving = I = 110 (from S=I for closed economy case)
f. Total Leakages = S+T = 110+50 = 160
g. Total Injections = I+G = 110+50 = 160
From “Leakages = Injections” as equilibrium condition (closed economy case)
Debits and Credits (Gin and Juice)
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