If the tax system is made more progressive, the pre-tax wages of low-income workers would _____
a. fall
b. rise
c. stay constant
d. rise or fall depending upon job market conditions
a
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Social Security contributions are
A) a voluntary dollar amount that people contribute towards Social Security. B) entirely paid by your employer. C) mandatory taxes partially paid out of workers' wages and salaries. D) collected only from people earning more than $120,000 a year.
Assume that the full-employment level of output is $500, and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $450 and at the price level of 100 current aggregate demand is $410. If the government wants to move the economy back to the full-employment level of output and the MPC is 0.75, then it should
A. reduce taxes by $30. B. increase taxes by $30. C. reduce taxes by $90. D. increase taxes by $90.