In an economy the volume of GDP is 12.000 units. The rate of VAT is 20 %. The 40 % of the
GDP is produced by capital while the remaining 60 % is produced by labour force. The tax
system looks as follows:
- There is no social benefit contribution.
- The rate of personal income tax is 25 %.
- The rate of corporate income tax is 20 %.
a) What is the amount of revenue the government might expect?
b) Assume that the government expenditures and transfers works out at 30 % of GDP, the
interest payments of state debt is 800 units. How much will be the volume of the total
balance and the primary balance of the government budget?
Recently Asked Questions
- For each of the functional areas you have addressed, analyze factors that define and shape management (such as the economy, customer needs and wants, and
- What are things (nursing interventions) that can be done to help alleviate lower extremity edema
- Preparation of Stockholders' Equity Section with Other Comprehensive Income Broadmore Corporation acquired 75 percent of Stem Corporation's common stock on