When Amy's income increased her average tax rate decreased trom 20 peroent to 15 percent.When Alice's income increased. her average tax tate increased hom 20 percent to 2 percentWhen Juke's income incremed, his average tax rate didn't changeIves in an economy witha pgressive ta ystempays a proportional te andlives in an economy with a regressive ta ystemmOA. Ale Ay Jake0B Amy Alice JakeOC. Alce, Jake, AmyO D. Jake, Amy Alice

A regressive tax system is a tax system in which the average tax rate decreases as income increases…

when Amy's income increased her aveage tax rate decreaned bom 20 peroent to 15 porcent When Aice's income increased her average ta rate increased hom 20 percent to 25 percent When Juke's income inoremed, s average tax tate didrt change ves in an economy with a pgresive ta ystem pays a proportional s and ves in an economy with aregressive ta system A. Alce Any Jake n Amy Alce Jahe C. Alce Jake Aeny

when Amy's income increased her aveage tax rate decreaned bom 20 peroent to 15 porcent When Aice's income increased her average ta rate increased hom 20 percent to 25 percent When Juke's income inoremed, s average tax tate didrt change ves in an economy with a pgresive ta ystem pays a proportional s and ves in an economy with aregressive ta system A. Alce Any Jake n Amy Alce Jahe C. Alce Jake Aeny

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter17: Taxation And Resource Allocation

Section: Chapter Questions

Problem 2DQ

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Similar questions

Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and longâ€”term impacts of such policies on the economy?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
What are some of the ways fiscal policy might encourage economic growth?
a. In the textbook, you read that Tyler does not save and planaccording to the theory of Ricardian equivalence but Alex is moreof a “Ricardian.” In light of this, who probably cuts back theirspending the most when taxes temporarily rise: someone like Tylerwho is not “Ricardian” or someone like Alex who is?b. If the U.S. government wants to use fiscal policy to shift ADaround easily, which one would the U.S. government prefer tomake more copies of: Tyler or Alex?
If the government gives a $300 tax cut to everyone inthecountry,explainthemechanismbywhichthiswill cause interest rates to rise.
a greatera smallerdecrease in government spendingdecrease in net taxesincrease in government spendingincrease in net taxesnono change in government spendingno change in net taxes
C = 450 + 0.4Y I = 350 G = 150 X = 70 Z = 35 + 0.1Y T = 0.15Y Yf = 1550 Calculate the tax revenue to the government of this country when the economy remains in equilibrium. Calculate what the new equilibrium income should be if the government of this country decides to cancel all taxes, implying the tax rate would now be 0%. Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?
What is fiscal policy? Can you give an example of a fiscal policy? Please discuss. [no chatgpt answer]