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Saabira earns $58,000 a year and pays an average annual tax rate of 15%. Instructions: Enter whole numbers in each blank. a. Saabira's disposable income
Saabira earns $58,000 a year and pays an average annual tax rate of 15%. Instructions: Enter whole numbers in each blank. a. Saabira's disposable income is $ 49300 and the amount of tax she pays to the government is $ 8700 b. Suppose a recession hits the economy and Saabira's income falls to $44,000 per year due to the fact that she is earning a smaller annual bonus. If she now pays an average annual tax rate of 12%, her disposable income is $ 38720 and the amount of tax she pays to the government is $ 5280 c. Saabira's annual salary fell by $ and her disposable income fell by $ d. In this example, income taxes are an automatic stabilizer
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