In a progressive tax system
A. the marginal tax rate and the average tax rate decrease as income levels increase and the marginal tax rate is less than the average tax rate.
B. the marginal tax rate and the average tax rate increase as income levels increase and the marginal tax rate exceeds the average tax rate.
C. the marginal tax rate increase as income increases but the average tax rate does not change as income increases.
D. the marginal tax rate and the average tax rate are the same for every income level and the same as income increases.
Answer: B
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A) Keynesian; weak B) "free lunch"; powerful C) Keynesian; powerful D) mainstream; powerful E) None of the above answers is correct.
The real income per capita is a measure of the
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