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Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the
Sales Taxes
Taxes imposed by governments on the sale of goods and services, collected by sellers at the point of sale.
Proportional
Relating to a relationship or ratio between two quantities where they increase or decrease at the same rate.
Progressive Tax System
A taxation system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a larger percentage of their income in taxes than lower earners.
Government Expenditures
The total amount of money spent by the government on various services and projects, including healthcare, education, and infrastructure.
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