The federal government collected less in total individual income taxes in 1983 than in 1982.
Can we conclude that Congress and the president cut individual income tax rates in 1983?
A.
Yes. Since the same amount of income was earned, if tax collection was down, the tax rate must have been cut.
B.
No. The tax rates might have stayed the same, but the process of collection may have changed.
C.
Yes. Since the same number of people would be paying taxes, if tax collection was down, the tax rate must have been cut.
D.
No. It could be that the economy contracted, so less income was earned and less was paid in tax.
Fiscal policy refers to:
A.
The government's use of taxes and expenditures to achieve macroeconomic policy objectives.
B.
The Fed's use of interest rates to achieve macroeconomic policy objectives.
C.
The Fed's use of taxes and expenditures to achieve macroeconomic policy objectives.
D.
The government's use of interest rates to achieve macroeconomic policy objectives.
The federal government collected less in total individual income taxes in 1983 than in 1982.
Can we conclude that Congress and the president cut individual income tax rates in 1983?
A.
Yes. Since the same amount of income was earned, if tax collection was down, the tax rate must have been cut.
B.
No. The tax rates might have stayed the same, but the process of collection may have changed.
C.
Yes. Since the same number of people would be paying taxes, if tax collection was down, the tax rate must have been cut.
D.
No. It could be that the economy contracted, so less income was earned and less was paid in tax.
Fiscal policy refers to:
A.
The government's use of taxes and expenditures to achieve macroeconomic policy objectives.
B.
The Fed's use of interest rates to achieve macroeconomic policy objectives.
C.
The Fed's use of taxes and expenditures to achieve macroeconomic policy objectives.
D.
The government's use of interest rates to achieve macroeconomic policy objectives.