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-Refer to the above figure. Suppose the relevant aggregate demand curve is . If the government wants to use discretionary fiscal policy to close the existing gap, it should
Tax Rate Schedule
A chart or table that determines the amount of tax due based on income brackets, applicable to different filing statuses.
Total Income
The aggregate amount of income earned by an individual or entity from all sources before any deductions or taxes.
Deductions
Expenses that can be subtracted from gross income to reduce taxable income, such as mortgage interest, medical expenses, and charitable contributions.
Tax Credit
A direct reduction in tax liability, not merely a reduction in taxable income, that can decrease the amount of taxes owed.
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