Explain the difference between a progressive income tax, a proportional income tax and a regressive income tax. Under which type of system is the federal income tax?
A progressive tax is an income tax system in which the taxpayer pays a higher tax rate as her taxable income rises (up to some maximum rate), as with the current federal income tax system. A proportional income tax (sometimes called a flat tax) is one in which the taxpayer pays a constant tax rate as her taxable income rises or falls. A regressive income tax is an income tax system in which the taxpayer pays a lower tax rate as her taxable income rises.
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A graph shows the average wage of various demographic groups in 2012. The kind of graph used to show these data would be a
A) scatter diagram. B) time-series graph. C) cross-section graph. D) Venn diagram. E) fixed-year figure.
Aggregate demand is the relationship between the quantity of real GDP demanded and the ________
A) price level B) money wage rate C) real wage rate D) nominal GDP demanded