What is the marginal tax rate in waxwania

Reference no: EM13880097

Problem 13-2 (Algo)

Refer to the accompanying table for Waxwania.

Government Expenditures, G	Tax Revenues, T	Real GDP
$160	90	$450
160	110	550
160	130	650
160	150	750
160	170	850

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)ProgressiveRegressiveProportional

b. Suppose Waxwania is producing $550 of real GDP, whereas the potential real GDP (or full-employment real GDP) is $650.

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.

percent

Reference no: EM13880097

Questions Cloud

Difference in straight-line and MACRS depreciation expense : Griffith Delivery Service purchased a delivery truck for $33,600. The truck has an estimated useful life of six years and no salvage value. For purposes of preparing financial statements, Griffith is planning to use straight-line depreciation. What i..

How does the uniform price rule affect bidding behavior : Consider a bidder just willing to accept a 4.2 percent return (her reservation price). Will she bid 4.2 percent? Or a higher (or lower) interest rate?

Cost of equity with and without flotation : avits & Sons' common stock currently trades at $25.00 a share. It is expected to pay an annual dividend of $2.75 a share at the end of the year (D1 = $2.75), and the constant growth rate is 6% a year. What is the company's cost of common equity if al..

Which ethical principle of the aicpa code of professional : An auditor characteristic of professional skepticism is most closely associated with which ethical principle of the AICPA Code of Professional Conduct?

What is the marginal tax rate in waxwania : 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?

What is its cost of common equity : The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 8% per year. Carpetto's common stock currently sells for $28.00 per share; its last dividend was $2.50; and it will pay a $2.70 dividend at the ..

How can auditors evaluate internal controls : How can auditors evaluate internal controls when their clients use IT outsourcing?

Circumference of the tube : The fins are equally spaced around the circumference of the tube, each having a thickness of 2 mm and a length of 15 mm. What is the corresponding overall heat transfer coefficient Uc?

Cost of common equity : Percy Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 13.50%. ..

User Account

All Pages