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In 2022, the annual income of a household of four is $75,000 and the general price level is 100. This household is in the 20
In 2022, the annual income of a household of four is $75,000 and the general price level is 100. This household is in the 20 percent income tax bracket. Therefore, the family's real after- tax income is units. Suppose that the price level and the household's income both increase at 5 percent in 2023. Due to its higher income, the household moves to the 24 percent income tax bracket. Now, the family's real after-tax income in 2023 equals units
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