Refer to the Following Table to Answer the Following Questions

question 66

Multiple Choice

Refer to the following table to answer the following questions:
-Using the table,what is the new average tax rate for a person who currently makes $80,000 per year and receives a $10,000 raise?

• A) 20.7 percent
• B) 20.0 percent
• C) 28.0 percent
• D) 27.5 percent
• E) 22.3 percent

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are actively seeking work but are unable to find a job.

Expected

Something considered likely or anticipated to happen or become a reality in the future.

Potential GDP

The highest level of real GDP that can be sustained over the long term without increasing inflation, assuming full employment of resources.

Expansionary Policy

A macroeconomic policy that aims to stimulate the economy by increasing government spending, decreasing taxes, or lowering interest rates to boost economic activity.