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Congress would like to increase tax revenues by 65 percent Assume that the average taxpayer in the United States earns $57,000 and pays an average

Congress would like to increase tax revenues by 65 percent Assume that the average taxpayer in the United States earns $57,000 and pays an average tax rate of 20 percent 


a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 65 percent increase in tax revenues. 


b. This is an example of what type of forecasting Static Dynamic

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