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Suppose the federal budget is balanced but that automatic stabilizers increase tax revenues by $50 billion per year and decrease transfer payments (e.g., welfare, unemployment benefits) by $10 billion per year for every 1 percentage point change in the real GDP growth. Using this information, complete the following table:Change in
GDP Growth
Rate Change
in Tax
Revenue Change in
Payments Change in
Balance −2%
$ billion $ billion $ billion +1% $ billion $ billion $ billion +3% $ billion $ billion $billion revised jrl 06-02-2011