(GDP Figures Are in Billions of Dollars

question 122

Multiple Choice

(GDP figures are in billions of dollars.) Refer to the above table.What was real GDP in Year 2?

• A)$4,820 billion
• B)$4,875 billion
• C)$4,911 billion
• D)$5,320 billion

---

Definitions:

Progressive Tax

Progressive tax is a taxation system where the tax rate increases as the taxable amount or income increases, placing a higher burden on those with higher incomes.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), essentially reflecting the percentage of income that is paid in taxes.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed.

Taxable Income

The amount of an individual's or entity's income used as the basis for calculating how much tax they owe to the government, after deductions and exemptions.