Refer to the graph below. If the government wants to collect tax revenues equal to R2, then the tax rate should be set at:

In the Solow model, if saving per worker initially exceeds investment per worker,

A) the economy will experience inflation. B) the capital—labor ratio will increase. C) investment per worker will decline. D) saving per worker will decline.

Which of the following observations concerning the Phillips curve is not true?

a. They are normally upward-sloping. b. They are more commonly constructed for price inflation. c. They depict the inverse relation between wage inflation and unemployment. d. They depict the rate of unemployment on the horizontal axis.