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The following table gives government revenues and expenditures for several years for West Laurasia. Compute the deficit and debt for the missing years. Assume that the West Laurasian government is not required to pay any interest on its debt.
Instructions: Enter your answer as a whole number
a.) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent.
That means its interest payments must be $ million.
b.) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $ million.
a. Fiscal Policy involves changing (Click to select) the money supply exports the number of months in a fiscal year taxes and government spending . In the United States, Fiscal Policy is implemented by the (Click to select) Secretary of the Treasury President and Congress Federal Reserve states .
b. (Click to select) Contractionary Fiscal Policy Expansionary Fiscal Policy can be used to address a Recessionary Gap by (Click to select) raising lowering taxes and (Click to select) lowering raising government purchases. Meanwhile, (Click to select) Expansionary Fiscal Policy Contractionary Fiscal Policy can be used to address an Inflationary Gap by (Click to select) lowering raising taxes and (Click to select) raising lowering government purchases.
a. Suppose the economy is in a Recessionary Gap. Show the impact of the appropriate Fiscal Policy response on the following graph:
Instructions: Use the line tool “AD2” to draw the appropriate curve.
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