Which of the Following Would Indicate That an Income Tax

question 176

Multiple Choice

Which of the following would indicate that an income tax is progressive?

• A)high-income people pay $3, 000; low-income people pay $1, 000
• B)low-income people pay $3, 000; high-income people pay $1, 000
• C)high-income and low-income people all pay $1000 each
• D)high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent
• E)both high-income and low-income people pay 10 percent of their income in taxes

---

Definitions:

Aggregate Demand

The complete requirement for every product and service within an economy, at a specific aggregate price level over a particular time frame.

Golden Age

A period in history marked by peace, prosperity, and significant advancements in arts, science, and culture.

Keynesian Economics

Keynesian Economics is an economic theory stating that government intervention is necessary to manage aggregate demand in order to address or prevent economic recessions.

Reagan Administration

The period of U.S. presidency under Ronald Reagan, from 1981 to 1989, known for its conservative policies, economic reforms, and efforts to end the Cold War.