The GDP of Grinland is currently $800 million. Production in Grinland is unaffected by changes in the tax rate until the rate hits 20 percent. Thereafter, for each 5-percentage points of increase in the tax rate, GDP drops by 60 million.
a) Complete the following table for the government of Grinland.
% Tax Rate GDP Tax Revenue
0
5
10
15
20
25
30
35
40
45
50
55
60