Suppose the Social Security Administration would like to guarantee the purchasing power of social security payments to the elderly does not diminish
That is, the real value of the payments does not decrease. The CPI in 1990 was 130.7 and the CPI in 1998 was 163.0. How much does the Social Security Administration need to increase payments from 1990 to 1998 to accomplish this objective?
The change in the general price level is 100(163-130.7)/130.7 = 25%. Thus, the level of payments in 1998 need to be P(1990)*(1+0.25).
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In the short run, each perfectly competitive firm is free to
a. increase its plant size. b. increase its volume of output up to its maximum existing capacity. c. charge a price above the market price. d. do all of these.
Which of the following is true? a. If minimum wage is set below the equilibrium wage, it leads to a labor surplus
b. If anything interferes with the voluntary exchanges that make up a market, equilibrium does not occur. c. Minimum wage helps deal with the problem of unemployment in the market for unskilled labor. d. Producers are willing to employ more labor at a minimum wage. e. Minimum wage leads to a situation of labor deficit in a market.
A country's rate of real GDP growth is 3% per year. Its population is growing 4% per year. At what rate is its real GDP per capita changing?
A. Real GDP per capita is increasing by 0.75%. B. Real GDP per capita is increasing by 7%. C. Real GDP per capita is decreasing by 1.33%. D. Real GDP per capita is decreasing by 1%.
when a worker takes on additional employment but is moved into a higher tax bracket and pays a higher tax rate
What will be an ideal response?