Economics Homework Help. Macro Economics Question
- Show all works for calculation, final result will not be accepted without showing how you reach to it.
- Avoid plagiarism, the work should be in your own
words, copying from students or other resources without proper referencing will
result in ZERO marks. No exceptions
- Question. 1 (4 points) Assume we have a closed economy, the data you go over it on discussion 1 (table 17) show the following information for the fourth quarter of 2020 (assume export = import = net export = 0):
- National income (excluding net export) = 534,973,000,000 SAR.
- Consumption equal 225,761,000,000 SAR.
- Government expenditures equal 143,387,000,000 SAR.
Assume that the consumption tax rate is 15% (Value Added Tax) and investment tax is 20%. Solve for the following (parts a to e) if Saudi Arabia is considered a closed economy:
- Tax revenue Hint, there are two types of tax; sales tax (VAT) and capital or investment.First, calculate investment to find tax revenue from investment.Add these two together.
- Investment.
- Private saving.
- Public saving and what kind of budget does Saudi Arabia has.
- National saving.
- On a few words; explain how the government could increase investment level using fiscal policy.
Question 2 (1 point) The main tools the central bank has is money supply, how does the central bank use this tool (how does the central bank change money in circulation)? Central bank uses this tool through purchasing and selling, how?
