Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 7

Identify whether the following individuals will be affected by bracket creep next year given the rates of taxation and levels of inflation found in Table 15P-1.

a. Gabriela makes $9,500, and inflation is at 5 percent.
b. Cooper makes $160,000, and inflation is at a record high of 20 percent.
c. Shawna makes $140,000, and inflation is at 8 percent.
d. Samuel makes $45,000, and inflation is at 6 percent.
Marguerite makes $96,000, and inflation is at 6 percent.