IMG_0982.jpg - tim marginal net fox rite swer th to Average tax rate C = atb XD ft equat leady st ter th AC that t NY = MPC = 6 n is g less i AT = DAY b

IMG_0982.jpg - tim marginal net fox rite swer th to Average...

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Unformatted text preview: tim marginal net fox rite swer th to Average tax rate ( C = atb XD ) ft equat leady st ter th AC that t NY = MPC = 6 n is g less) i AT = DAY - b A t . - b t, A y + 46 to does bot change with I as it is endogenous , and donbe state I Y - b A Y - b t A Y + 1 G AM - bAY + bt, Ay = NO DO I Autonomous expend i t ure mult silver = ( 1 -be ( tti) B. Yes the income tax functions as in automatic stabilizer because whenever i fluctuates the tax sibility will adjust accordingly, to balance or stabilise with a massian tax rate of to, eids I- dollar reduction In GDP reduces on individual's assposabre income by onix ( 1 - ti). doings because their fax Ilability falls by the dollnis. At ( labAbt,) As to increases income will fall...
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