01. Referring to Fig 2d and the attached table, determine whether average pre-tax income of the top 10%, top 5%, top 1% of households by income has increased or decreased in the recession years of 1980-81, 1990-91, and 2001 (as compared to immediately prior year).     Increased     decreased

Question: Solve for the equilibrium level of output in the following two scenarios: there isan income tax t=0.1, The income tax would result in the total amount of tax to be the lump sum tax and the income tax rate on income when t=0.1t=0.1 Y=−5+0.5(Y−250−0.1Y)+200+300+50'   =−5+0.5(0.9Y−250)+550  =−5+0.45Y−125+550    =0.45Y−420 0.55Y=420Y=4200.55=763.636≅763.64   Please explain this solution.  Where does the 0.45Y come from?

a tax decrease will decrease consumption   a tax increase will increase consumption   consumption and after-tax income are unrelated   consumption varies inversely with after-tax incomes   consumption varies directly with after-tax incomes

If low-income families pay 10% of their income in taxes while high-income families pay 20% of their income in taxes, the tax system is which of the following?   Group of answer choices Unfair Regressive Excessive Proportional Progressive

The table below shows hypothectical figures of revenue and spending for the Canadian government. For simplicity, assume that all of the spending grants to other levels of government were spent in Canada on goods and services. REVENUES Personal income taxes Corporate income taxes Other income taxes. GST and excise taxes EI premiums Federal Government's Budget Plan for Fiscal Year ($billion) OUTLAYS $95 36 5 47 13 17 Transfers to persons Spending grants to other levels of government Public debt charges Direct program spending Total Outlays Projected Budget Plan Surplus Other revenues Total Revenues 213 a. The projected NTR in this budget plan is $ b. The value of NTR less government spending on goods and services (G) is $ billion. billion. $42 36 31 100 209 4

Refer to the tax table below. If your taxable income is $8,000, your average and marginal tax rates are Taxable Income Total Tax $ 2,000 $ 200 4,000 600 6,000 1,200 8,000 2,000 10,500 3,000 25% average rate and 25% marginal rate on additional income. 25% average rate and 40% marginal rate on additional income. 20% average rate and 30% marginal rate on additional income. 25% average rate with a marginal rate that can not be determined.

10. Compare and contrast the different forms of fiscal policy. Expansionary Fiscal Policy Contractionary Fiscal Policy Government Spending Taxes Aggregate Demand National Debt Economic Growth Inflation Employment

Compare the tax breaks for two different income groups in the Bush 2006 tax bill

Describe the potential consequences of maintaining high public debt.

Tax Bracket :  0-$20,000 = 10% $20,001-$60,000 = 15%  $60,001-$100,000 = 35%  _______________________________   Jessica makes $25,000. How much tax does she pay?  A. $3,000 B. $3,750 C. $2,750 D. $1,200