- a.* What is the marginal tax rate in Waxwania? percent
The average tax rate? percent
Which of the following describes the tax system: proportional, progressive, regressive? (Click to select)RegressiveProgressiveProportional
- b.* Suppose Waxwania is producing $650 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $750.
How large is its budget deficit? $
Its cyclically adjusted budget deficit? $
Its cyclically adjusted budget deficit as a percentage of potential real GDP?
- Instructions: Round your answer to two decimal places.*
Is Waxwania’s fiscal policy expansionary or is it contractionary? (Click to select)ContractionaryExpansionary