-Refer to the Above Table

question 239

Multiple Choice

-Refer to the above table. When real GDP equals $10 trillion,

• A) government expenditures will increase.
• B) the economy is in equilibrium.
• C) unplanned inventories will increase.
• D) unplanned inventories will decrease.

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Definitions:

Personal Income Taxes

Taxes levied on the income of individuals, typically graduated so that higher income levels are taxed at higher rates.

Progressive

Describes a tax system where the tax rate increases as the taxable base amount increases, typically aimed at reducing income inequality.

Proportional

Having a constant relation in degree or number between two or more variables.

Regressive

Describing taxes or policies that take a larger percentage from low-income earners than from high-income earners.