Suppose the tax rate on the first $10,000 of income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on income over $60,000. Family A has an income of $55,000
What is the tax liability of Family A? A) $16,500
B) $6,600
C) $7,500
D) $3,400
C
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Suppose that the Consumer Price Index increased from 100 to 120 between 2011 and 2012. Your nominal wages rose during the same period from $200 a week to $260. By how much did your real income rise?
a. 30 percent b. 16.7 percent c. 8.33 percent d. 12 percent
The market supply curve
a. is found by vertically adding the individual supply curves. b. slopes downward. c. represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good. d. represents the sum of the quantities supplied by all the sellers at each price of the good.
An increase in the population growth rate in the Solow growth model causes the growth in output per worker to be higher in the long run or steady state
a. true b. false
Monetary and fiscal policymaking that is carried out in response to a pre-set rule and does NOT respond to changes in economic activity is known as
A. discretionary policymaking. B. nondiscretionary policymaking. C. active policymaking. D. Keynesian policymaking.