What Does Macroeconomics Focus On

question 163

Multiple Choice

What does macroeconomics focus on?

• A) the minor issues facing the national economy
• B) the role of government
• C) the small individual units operating within the economy
• D) the major issues facing the national economy

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Definitions:

Average Tax Rate

The percentage of total taxable income that is paid in taxes, calculated by dividing the total tax paid by the total taxable income.

Taxable Income

The portion of income that is subject to taxation after allowances, deductions, and exemptions.

Progressive Taxes

A tax system in which the tax rate increases as the taxable amount increases, meaning higher income individuals pay a higher percentage of their income in taxes.

State and Local Taxes

Taxes imposed by state and local government entities that can include income, sales, and property taxes.