The Federal Income Tax Is an Example of a

question 139

Multiple Choice

The federal income tax is an example of a

• A)progressive tax.
• B)regressive tax.
• C)proportional tax.
• D)value-added tax.

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Definitions:

Aggregate Demand

Aggregate economic demand for products and services, assessed at a certain overall price point during a predefined time span.

National Debt

The total amount of money that a country's government has borrowed and not yet repaid, often through the issuance of securities.

Inflationary Gap

The difference between the actual output of an economy and the output it could achieve with full employment, leading to inflation when demand outstrips supply.

GDP

The total economic value of all end goods and services made within a nation's borders during a specific period is known as Gross Domestic Product.