ava108
ava108
24.11.2021 • 
Business

20 2020

Q.2.4

Calculate the tax revenue to the government of this country when the economy

remains in equilibrium.

(2)

Q.2.5

(6)

Calculate what the new equilibrium income should be if the government of this

country decides to cancel all taxes, implying the tax rate would now be 0%.

Q.2.6

(4)

Before the government decreased the tax rate, how much of government

spending was required to bring the economy to full employment?

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