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Sagot :
Answer:
1) When the government decreases taxes, disposable income increases. That translates to higher demand (spending) and increased production (GDP). So, the fiscal policy prescription for a sluggish economy and high unemployment is lower taxes.
2) Income multiplication is very important to the market economy. When one receives income, one can spend it on many goods and services. This provides jobs for the people who created those goods and services. ... A good example of income multiplication is the connection between a factory and the community where it's located.
3) The overall level of investment is one of the main determinants of long-term economic growth. ... As personal saving contributes to investment, all else equal, a higher saving rate will result in a higher level of physical capital over time, allowing the economy to produce more goods and services.
4) •Interest payments are the final main category of government spending shown in the figure. These four categories—national defense, Social Security, healthcare, and interest payments—account for roughly 71% of all federal spending, as Figure 2 shows.
•Government spending can be broken down into two categories: mandatory and discretionary. Mandatory spending is determined by previous law and includes spending for programs like Social Security and Medicare.
5) All or nearly all of the revenue that a local government has to spend comes from their IRA, though some local governments also have additional local sources of revenue such as property taxes and government fees. ... Since cities have more sources of local revenues, their IRA ranges from 50% to 70% of their total budget.
Explanation:
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