Congress would like to increase tax revenues by 8.5 percent. Assume that the average taxpayer in the United States earns $59,000 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 8.5 percent increase in tax revenues?(Round your answer to 2 decimal places.)

b.This is an example of what type of forecasting?

a) Static

b) Dynamic