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For each of the following tax liability schedules, identify whether it represents a progressive, regressive, or proportional tax structure:
Taxable Income
Tax Liability #28
Tax Liability #29
Tax Liability #30
$1,000
$100
$50
$2,000
$300
$3,000
$150
$500
1. What is a Phillips Curve? What two rates are being related?
2. What were the aggregate supply shocks to the American economy during the 1970s and early 1980s? How did these shocks affect interpretation of the Phillips Curve?
3. What are the characteristics of the long-run Phillips Curve? How is this curve related to the natural rate of unemployment?
4. Calculate the value of the velocity of money assuming nominal national income is $50,000 and the money supply is $10,000. Explain what this value of velocity which you computed means.
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