Table 10-7
the Table Below Contains Data for the Country

question 230

Multiple Choice

Table 10-7
The table below contains data for the country of Togogo. The base year is 1974. $$\begin{array} { c c c } \text { Year } & \begin{array} { c } \text { Nomintal } \\\text { GDP }\end{array} & \begin{array} { c } \text { CDP } \\\text { Deflatar }\end{array} \\\hline 1974 & \mathbf { \$ 20 0 0 } & 100 \\1975 & \$ 3000 & 120 \\1976 & \mathbf { \$37 5 0 } & 150 \\1977 & \mathbf { \$ 6 0 0 0 } & 200\end{array}$$
-Refer to Table 10-7. From 1975 to 1976,

• A)inflation was 25% and output did not grow.
• B)inflation was 25% and output grew.
• C)inflation was 50% and output did not grow.
• D)inflation was 50% and output grew.

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Definitions:

Tax Liability

The total amount of tax owed to the government after all deductions, credits, and prepayments have been taken into account.

Tax Refund

The amount of money returned to a taxpayer by the government when the taxpayer's total tax payments exceed their tax liability for a given year.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.