These Four Steps, and in the Following Order, Are Used

question 3

True/False

These four steps, and in the following order, are used to study macroeconomic behavior:
(1) document the facts;
(2) use the model to make other predictions that may eventually be tested;
(3) compare the predictions of the model to the original facts;
(4) develop a model.

---

Definitions:

Wage-Base Limitation

A wage-base limitation refers to the maximum amount of earnings that is taxed for certain social services, such as Social Security, beyond which earnings are no longer subject to the tax.

Regressive

A term typically used to describe a tax system where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

Wages and Salary

Compensation received by employees for their labor, typically paid as hourly wages or annual salaries.

Taxed

Taxed refers to the imposition of financial charges or other levies upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.