The government of Osiris believes in balancing its budget over a seven-year cycle. Over the first six years, it has maintained itsspending at $200 billion and its MTR at 0.25. (There are no autonomous taxes in Osiris). Column 2 of the table below shows the levelof GDP in each of the first six years in the cycle.a. Complete the table below. Round your answers to nearest whole number.(4)(1)Year(2)GDP(3)Tax RevenueGovernment(5)Deficit/SurplusSpending($billion)($ billion)($billion)180020027602007402004825200820200825200Suppose that the estimated level of GDP in Year 7 is projected to be $800.b. What level of government spending (assuming no change in the tax rate) for the government of Osiris to end the seven-year cyclewith its budgetary goal on target?Government spending would have to be $c. Alternatively, what should the new tax rate be (assuming no change in government spending) for the government of Ran to end theseven-year cycle with its budgetary goal on target? Round your answer to 2 decimal places.Tax rate should be changed to%.3.

Given that the tax rate is 0.25, we will have the following table:

The government of Osris believes in balancing its budget over a seven-year cycle. Over the first six years, it has maintained its spending at $200 billion and its MTR at 0.25. (There are no autonomous taxes in Osiris). Column 2 of the table below shows the level of GDP in each of the first six years in the cycle. a. Complete the table below. Round your answers to nearest whole number. (4) (1) Year (2) GDP (3) Tax Revenue Government (5) Deficit/Surplus Spending ($billion) ($ billion) ($billion) 1 800 200 760 200 3 740 200 4 825 200 820 200 6 825 200 Suppose that the estimated level of GDP in Year 7 is projected to be $800. p. What level of government spending (assuming no change in the tax rate) for the government of Osiris to end the seven-year cycle with its budgetary goal on target? Government spending would have to be $ -. Alternatively, what should the new tax rate be (assuming no change in government spending) for the government of Ran to end the seven-year cycle with its budgetary goal on target? Round your answer to 2 decimal places. Tax rate should be changed to %. LO

The government of Osris believes in balancing its budget over a seven-year cycle. Over the first six years, it has maintained its spending at $200 billion and its MTR at 0.25. (There are no autonomous taxes in Osiris). Column 2 of the table below shows the level of GDP in each of the first six years in the cycle. a. Complete the table below. Round your answers to nearest whole number. (4) (1) Year (2) GDP (3) Tax Revenue Government (5) Deficit/Surplus Spending ($billion) ($ billion) ($billion) 1 800 200 760 200 3 740 200 4 825 200 820 200 6 825 200 Suppose that the estimated level of GDP in Year 7 is projected to be $800. p. What level of government spending (assuming no change in the tax rate) for the government of Osiris to end the seven-year cycle with its budgetary goal on target? Government spending would have to be $ -. Alternatively, what should the new tax rate be (assuming no change in government spending) for the government of Ran to end the seven-year cycle with its budgetary goal on target? Round your answer to 2 decimal places. Tax rate should be changed to %. LO

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 8E

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