Suppose Jill has earned more income this year as compared to what she did last year. Her income tax has also increased. Does it necessarily mean that the income tax system is progressive? Explain
What will be an ideal response?
No, the amount of income tax can increase as income increases in any of the three tax systems (regressive, progressive, and proportional). However, in a progressive tax system, the tax rate (not the tax amount) increases as income increases.
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If demand is ________ with respect to price, a price increase will ________ total revenue.
A. inelastic; decrease B. inelastic; increase C. elastic; increase D. unit elastic; decrease
An increase in the employment tax will have no effect on output if the labor supply curve
A) is perfectly vertical. B) has a positive slope. C) is perfectly horizontal. D) has a negative slope.
Who was Jean-Baptiste Say? How does his theory (or "law") compare with that of John Maynard Keynes?
What will be an ideal response?
How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real
wages? A) one B) two C) three D) four