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