If a household earning $50,000 annually pays $10,000 in taxes while a household earning $100,000 annually pays $20,000 in taxes, then the tax system is
A. progressive.
B. redistributive.
C. neither regressive nor progressive.
D. regressive.
Answer: C
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What will be an ideal response?
If the price level falls as real GDP decreases, the multiplier effects of any given change in aggregate expenditures are smaller than they would be if the price level remained constant
a. True b. False Indicate whether the statement is true or false
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