Question
In what kind of tax system does the average tax rate fall as GDP rises?
Multiple choice question.
Regressive
Progressive
Additional
Proportional
Multiple choice question.
Regressive
Progressive
Additional
Proportional
Answers
GPT-4o mini
The correct answer is **Regressive**.
In a regressive tax system, the average tax rate decreases as income (or GDP) rises, meaning that those with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes.
In a regressive tax system, the average tax rate decreases as income (or GDP) rises, meaning that those with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes.