If the percentage of income paid in taxes increases as income rises, then the tax system is
A. Progressive.
B. Regressive.
C. Nominal.
D. Marginal.
Answer: A
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At each of the three points in the following graph, indicate whether planned aggregate expenditure is greater than, equal to, or less than GDP?
What will be an ideal response?
Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real goods market with aggregate supply shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the right. d. Start the analysis in the real credit market with demand for real credit shifting to the left. e. Start the analysis in the real credit market with demand for real credit shifting to the right.
When quantity supplied is greater than quantity demanded, the price will _____.
Fill in the blank(s) with the appropriate word(s).
The Consumer Price Index is
A. A measure of changes in the average price of consumer goods and services. B. A measure of changes in the average price of all goods and services. C. The impact felt by consumers who move into a higher tax bracket because of inflation. D. Used to measure the impact of business speculation on consumers.