In year 1 the CPI is 140, and in year 2 the CPI is 160. From year 1 to year 2, Chiang's salary rises from $42,000 to $49,000, and Marta's salary rises from $55,000 to $60,000. Who is "more than keeping up with inflation"?
A) Marta
B) Chiang
C) both Marta and Chiang
D) neither Marta nor Chiang
B
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If actual inflation is greater than expected inflation
A) the Phillips curve is a vertical line. B) real wages fall. C) real wages rise. D) the unemployment rate rises.
Exemptions are more desirable than deductions for a person in the 36% tax bracket.
A. True B. False C. Uncertain
Martha did not like her job as a receptionist, so she quit and is looking for one that better suits her artistic talents. Ting Pei would like to work, but employers are not willing to hire him because he does not speak English. Martha is ________ unemployed and Ting Pei is ________ unemployed.
A. frictionally; structurally B. structurally; cyclically C. cyclically; structurally D. structurally; frictionally
List some of the reasons why GDP should not be considered an effective measure of the standard of living in a country.
What will be an ideal response?