# Assume an economy with the following variables: YN = 13,500; t = 17.5% ; YA = 15,750; G = 4800 ;... 1 answer below »

Assume an economy with the following variables: YN = 13,500; t = 17.5% ; YA = 15,750; G = 4800 ; Ta = 900
a) Compute the amount of taxes at natural GDP.
b) Compute the amount of taxes at real GDP
c) Compute the actual deficit d) Compute the N.E.D (Natural Employment Deficit).

GANISETTI V

(a)

Amount of Taxes at Natural GDP = tax rate * Natural GDP = Ta + (t/100)*YN = 900 + (17.5/100)*13500

= \$3262.5

(b)

...
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