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(Figure: Three AD Curves) In the accompanying diagram,the economy's long-run growth rate following a positive money shock would be:
FICA
Federal Insurance Contributions Act, the U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.
FICA Taxes
Federal Insurance Contributions Act taxes, funding Social Security and Medicare, deducted from employee paychecks and matched by employers.
Federal Income Tax
A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.
Tax Liability
The total amount of tax owed by an individual, corporation, or other entity to a taxing authority, such as the federal government.
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