$2)$ Consider a tax system in which tax liability is computed as a $20\%$ tax on labour income minus a lump$-$sum

grant to taxpayers of $$5000.$ This system is $\_\_\_\_\_\_\_\_$ and a taxpayer with labour income of $\_\_\_\_\_\_\_$ has zero

tax liability.

A$)$ progressive; $$1,000$

B$)$ progressive; $$10,000$

C$)$ not progressive; $$25,000$

D$)$ progressive; $$25,000$

E$)$ not progressive; $$1,000$