If your income is 40,000 and you pay taxes of 4,650, what is your ...

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If your income is 40,000 and you pay taxes of 4,650, what is your average tax rate? Show your work.
 
  What will be an ideal response?

Question 2

What is potential GDP?
 
  A) It is the level of real GDP in the short run.
  B) It is the difference between current GDP and maximum GDP.
  C) It is the level of GDP at which inflation is constant.
  D) It is the level of real GDP in the long run.

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Answer to Question 1

Average tax rate = 4,650/40,000 = 0.11625 or 11.625 percent.

Answer to Question 2

D