巴罗宏观经济学答案Chapter 13.docVIP

Chapter 13: Taxes Answers to review questions, pg. 338 1. The average tax rate is the total tax liability/total income, but the marginal tax rate is the change in tax liability/change in income. In the case of a flat tax that is incurred from the very first dollar of income, they would be equal. If there is a portion of income which is exempt from taxation, then the average tax rate will be lower than the marginal rate. In this case, the average rate will increase as income grows, but it will never “catch up” to the marginal rate. 2 Theoretically, if the labor supply is sufficiently ela