Prior to the 1980s, the top marginal tax rates in the United States were very high (i.e., greater than 70 percent during the Great Depression and afterward). Why is it unlikely that tax rates will ever reach that level again?

Complete the answers to the following questions. Be precise and to the point.
1) Prior to the 1980s, the top marginal tax rates in the United States were very high (i.e., greater than 70 percent during the Great Depression and afterward). Why is it unlikely that tax rates will ever reach that level again?
2) List and summarize the three shortcomings of fiscal policy.
3) What are the techniques available to the Federal Reserve to alter the money supply? Briefly explain how each method works.
4) Consider this excerpt from the textbook: “In the fall of 2007, it was clear that the U.S. economy was slowing. The unemployment rate rose from 4.4 percent to 5 percent between May and June 2007, and real [gross domestic product] GDP grew by just 1.7 percent in the fourth quarter. The U.S. economy officially entered recession in December 2007. We now know that the nation’s economy was entering several years of low growth and high unemployment. Many economists believe that a decline in aggregate demand was one of the causes of the recession.” What did the Federal Reserve do in response to this decline in aggregate demand?
5) How are the long-run Phillips’s curve and the natural rate of unemployment related?

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