Congress would like to increase tax revenues by 11.5 percent. Assume that the average taxpayer in the United States earns $62,000 and pays an average tax rate of 10 percent.
a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 11.5 percent increase in tax revenues? (Round your answer to 2 decimal places.)
b. This is an example of what type of forecasting?
Static
Dynamic