O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2024 · Q181 Mark
The table shows the income tax rate paid by workers at different levels of income in selected years for a developed economy. income band ($),tax rate year 1 (%),tax rate year 2 (%) 0 to 4999,0,0 5000 to 9999,10,0 10000 to 19999,20,10 20000 to 29 999,30,30 30000 to 49 999,40,50 50000+,40,60 What is most likely to have been the economic objective of the government in changing the tax rates between year 1 and year 2?
Ato reduce a current account deficit
Bto reduce income inequality
Cto reduce inflation
Dto reduce structural unemployment
✓ Correct answer
B: to reduce income inequality
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