Question 24 (3.55 points) For a tax rate increase, a government static forecast will NOT result in additional revenue for the government C True C False For the following three questions: Combined, John and Sally have $130,000 of taxable wages per year and their combined marginal federal and state income tax rate is 30% Because of recent law changes, their taxable marginal tax rate will increase to 35%. Question 25 (5 points) If John decides to work additional hours to offset this tax increase, what is the amount of additional wages he must earn so his take home pay after taxes is the same as before the tax increase? Question 26 (3.55 points) If John and Sally decide to work less in response to the tax increase, what effect are they demonstrating? A) Static forecast effect C B) Substitution effect C) Dynamic forecast effect D) Income effect Question 27 (3.55 points) The increase in tax rates resulted in what type of equity change for John and Sally? CA) Circular C B) Straight CC) Vertical CD) Horizontal