Asked by
AyeeThats Larah
on Nov 11, 2024Verified
Because the income tax structure is progressive,the amount of taxes paid is a _____.
A) constant fraction of income throughout the business cycle
B) larger fraction of income in expansions than in contractions
C) smaller fraction of income in expansions than in contractions
D) decreasing function of income in both expansions and contractions
E) constant amount at all levels of output and income
Progressive Tax
A tax system in which the tax rate increases as the taxable amount increases, placing a higher financial burden on wealthier individuals.
Business Cycle
The fluctuating levels of economic activity in an economy over a period, characterized by expansion, peak, recession, and recovery phases.
Taxes Paid
Taxes paid refer to the monetary contributions levied by the government on individuals, corporations, and other entities, based on income, property, sales, and other activities.
- Recognize and elucidate the function of automatic stabilizers within the economic system.
Verified Answer
DJ
Learning Objectives
- Recognize and elucidate the function of automatic stabilizers within the economic system.