One of the consequences of the overstatement of the CPI is that
A. Social Security taxes are lower than they would otherwise be.
B. the poverty line is lower than it would otherwise be.
C. personal income taxes are lower than they would otherwise be.
D. Social Security payments are lower than they would otherwise be.
Answer: C
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The idea that firms retain some workers in a recession, whom they would otherwise lay off, to avoid the costs of hiring and training, is called
A) the gift exchange motive. B) worker pooling. C) labor hoarding. D) union busting.
When exchange rates are set by government decree,
a. appreciation is called devaluation. b. depreciation is called devaluation. c. depreciation is called deflation. d. appreciation is called inflation.
If the price level changes from PL2 to PL1, what happens to the quantity of real GDP demanded?
a. It decreases from RGDP2 to RGDP1.
b. It increases from RGDP1 to RGDP2.
c. It decreases from RGDP1 to RGDP2.
d. It increases from RGDP2 to RGDP1.
If the quantity supplied of candy increases by 1% when the price of candy increases by 2%, which of the following is TRUE?
A) Supply for candy is elastic, and price elasticity of supply = 2.0. B) Supply for candy is inelastic, and price elasticity of supply = 2.0. C) Supply for candy is elastic, and price elasticity of supply = 0.5. D) Supply for candy is inelastic, and price elasticity of supply = 0.5.