You get your first paycheck and notice that a percentage of your money has gone to taxes. your employer explains that everyone has to pay taxes. why do you have to pay taxes? what would happen if you did not pay taxes? what type of taxes do you currently have to pay and why? your friend fills out their first tax form and is confused between adjusted and gross income. how can you explain the difference to your friend so that they can understand the difference? give an example on why your friend’s income may be adjusted.

gross income is what you will get without taxes being taken out , or anything being taken out. adjusted income is when your taxes are taken out and that is what you will get .

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.

answerboth the short run phillips curve and the aggregate demand and aggregate supply model