Author Question: When the tax structure of a nation is progressive, as incomes increase, the tax rate: a. declines. ... (Read 33 times)

karlynnae · **on:** Jun 30, 2018

When the tax structure of a nation is progressive, as incomes increase, the tax rate:
a. declines.
b. remains the same.
c. increases.
d. is proportional.

Question 2

If the economy is in recession, explain what advice you would give the President, if you were a monetarist economist. What if you were a Keynesian?

perkiness · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

If you were a monetarist, you would tell the President not to intervene in the economy because the economy will naturally move to full employment in the long run. If you were a Keynesian, you would advocate intervention in the form of lower taxes or more government spending, because Keynesians do not believe that the economy will achieve full employment by itself.