Refer to the accompanying table for Waxwania. Government Expenditures, G Tax Rev
ID: 1092801 • Letter: R
Question
Refer to the accompanying table for Waxwania. Government Expenditures, G Tax Revenues, T Real GDP $180 90 $450 180 110 550 180 130 650 180 150 750 180 170 850 a. What is the marginal tax rate in Waxwania? percent The average tax rate? percent Which of the following describes the tax system: proportional, progressive, regressive? b. Suppose Waxwania is producing $550 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $650. How large is its budget deficit? $ Its cyclically adjusted budget deficit? $ Its cyclically adjusted budget deficit as a percentage of potential real GDP? Instructions: Round your answer to two decimal places. percent
Explanation / Answer
That explanation was better than my teacher's , thank you!