Figure 35-1.The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves.On the right-hand diagram,U represents the unemployment rate. 
-Refer to Figure 35-1.What is measured along the vertical axis of the right-hand graph?
Definitions:
Marginal Tax Rate
The rate at which your last dollar of income is taxed, indicating the tax rate applied to the next dollar of taxable income.
Excise Tax
Excise tax is a specific type of tax imposed on certain goods, services, and activities, often included in the price of products like tobacco, alcohol, and gasoline.
Regressive Tax
A tax system where the tax rate decreases as the taxable amount increases, putting a higher relative burden on lower-income earners.
Direct Tax
A tax directly paid to the government by the individual or organization upon whom it is imposed, such as income tax.
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