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Economics, 15/e
Campbell R. McConnell, University of Nebraska, Emeritus
Stanley L. Brue, Pacific Lutheran University
Chapter 16 Extending the Analysis of Aggregate Supply
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Web-Based Questions
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Web-Based Questions
- Web-Based Question: Phillips
Curve-do the data fit the pattern for the past 5 years?
The Phillips Curve purports to show a stable short-run relationship
between the rate of inflation and the unemployment rate.
Plot the inflation-unemployment data points for the latest
5 years in the following manner: For inflation data, use
the consumer price index-all urban consumers. For unemployment
data, use the unemployment rate-civilian labor force. Do
any of your plots of data points seem to confirm the Phillips
Curve concept for these 5 years? Retrieve unemployment data
from the Bureau of Labor Statistics website, stats.bls.gov/cps,
and select most requested statistics. For inflation data,
go to stats.bls.gov/cpi
and select most requested statistics.
- Web-Based Question: The Laffer Curve -
does it shift? Congress did not substantially change Federal income
tax rates between 1993 and 2000. Visit the Bureau of Economic Analysis website,
www.bea.doc.gov/,
and use the interactive feature for national income and product accounts tables
to find Table 3.2 on Federal government current receipts and expenditures.
Find the annual revenues from the Federal income tax from 1993 to 2000. What
happened to those revenues over those years? Given constant tax rates, what
do the changes in tax revenues suggest about changes in the location
of the Laffer Curve? If lower (or higher) tax rates do not explain the changes
in tax revenues, what do you think does?
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Interactive Graphs
Origin of the Idea
Analogies, Anecodotes, and Insights