Which is necessarily true if the government were to replace a progressive income tax system with a proportional one?
A. Lower income groups would pay less tax
B. Higher income groups would pay less tax
C. Lower income groups would pay more tax
D. The distribution of after-tax income would become less equal
D. The distribution of after-tax income would become less equal
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What is the approximate number of Americans who have jobs?
A. 160 million B. 240 million C. 290 million D. 330 million E. 3.1 billion
A tax on a good that is imposed by the importing country is called a
A) tariff. B) nontariff barrier. C) quantitative restriction. D) licensing regulation. E) trade constraint.
Which of the following statements is true?
a. Above the optimal tax rate, a reduction in tax rates along the downward-sloping portion of the Laffer curve would increase tax revenues. b. According to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation. c. The presence of the automatic stabilizers tends to destabilize the economy. d. To combat inflation, Keynesians recommend lower taxes and greater government spending.
The problem for government policy makers of knowing just where the business cycle turning points are is important in implementing
a. a balanced budget b. sustained economic growth c. appropriate technology d. countercyclical fiscal policy e. inflationary and deflationary gaps