Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Under a particular tax system, the govt. collects $20 billion in tax revenues when GDP is $200 billion and $25 billion when GDP is $500

Under a particular tax system, the govt. collects $20 billion in tax revenues when GDP is $200 billion and $25 billion when GDP is $500 billion. Thistax systemis

A.Proportional becausetax rate remains unchanged even when GDP increases

B.Regressive becausetax rate decreases with increase in GDP

C.Progressive becausetax rate increases with increase in GDP

D.Regressive becausetax rate increases with increase in GDP

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: Roger A. Arnold

12th edition

978-1305758674, 1305758676, 978-1285738321

More Books

Students also viewed these Economics questions

Question

What are the primary discovery tools?

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago

Question

2. Value-oriented information and

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago