Carla Blackwell Econ 210- Macroeconomics 4/20/15 Phase 2 IP Alan Witty Part 1 The basic formula for calculating the GDP is: Y = C + I + E + G. In this formula, the letter Y is your GDP. C indicates consumer spending. The letter I would symbolize the investment made by industry. The letter E is the excess of exports over imports, while the letter G indicates government spending. To calculate the GDP of a certain x then one would input numeric values in the place where the letters are in the formula.
Exercise Chapter 33 Student: ___________________________________________________________________________ 1. If the Congress passes legislation to decrease government spending to control demand-pull inflation, then this would be an example of a(n): A. Automatic stabilizers B. Expansionary fiscal policy C. Contractionary fiscal policy D. Nondiscretionary fiscal policy 2. An expansionary fiscal policy can be illustrated by a(n): A. Change in the price level B.
Week 5 Assignment Questions 14-24 What is the purpose of the dividends-received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? The purpose of the dividends received deduction is so that corporations would not be taxed at a corporate level a shareholder level or if when dividends or a recipient corporation. The dividends qualifying for the dividends-received deduction are those dividends paid by domestic corporations subject to the corporate income tax.
One factor which was responsible for roughly one-third of hybrid vehicles purchased in 2007 was an increase in the price of gasoline. The increase in sales due to higher gasoline prices describe the economic concept of A) using assumptions to simplify. B) ceteris paribus. C) marginal thinking. D) rationalself interest.
14) What is the primary purpose of the IFC? 5) A ____________ refers to the official price of a currency in terms of gold. 15) What determines a country's borrowing power from the IMF? 20) Dirty float is another term for ___________. 6) Assume you are an American exporter in 1895.
Another argument on income tax had been raised regarding the definition of ‘income”. The Merchant’s Loan and Trust Company filed a case in 1921 a propos the imposition of income taxes on individuals and estates. The company complained that the gain on the sale of stock by the “Estate of Arthur Ryersonx, Deceased” was not taxable. Merchant’s Loan argued that income consists of only corporate profits, and therefore, only corporate profits are taxable. But the U.S. Supreme Court ruled that the income of a non-corporate taxpayer is
14-24 What is the purpose of the dividends-received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? The purpose of the dividends-received deduction is to reduce the effect of multiple taxation that takes place when corporations are receiving dividend income. Only dividends received from domestic corporations subject to the corporate income tax are eligible for the dividends-received deduction.
This would essentially mean that investment income is taxed just like any other income under the personal income tax. Long-term capital gains and qualified stock dividends are subject to two rates under the personal income tax, zero percent and 15 percent. (Most of this income is therefore taxed at 15 percent under the personal income tax.) These tax preferences are regressive; this tax system in which those with low income pay higher taxes than the wealthy is
| Falling, rising | B. | Rising, falling | C. | Leveling, rising | D. | Falling, leveling | | | 12. All of the following are true of tariffs, except | | | Student Response | A. | They reduce the revenue for the government | B. | They can be levied as a proportion of the value of the imported good | C. | They can be levied as a fixed charge for each unit of a good imported | D. | They impose significant costs on domestic consumers | | | 13.