The marginal tax rate is the change in the average tax rate as income increases.

Given a downward sloping demand curve, a tax on the supply of a good will result in an increase in equilibrium price that is less than the amount of the tax.

Answer the following statement true (T) or false (F)

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

a. frictional b. structural c. cyclical d. natural