What is a "cost-of-living" adjustment?
What will be an ideal response?
Increases in nominal wages or benefits to keep purchasing power constant.
You might also like to view...
Which of the following accurately describes growth rates in the United States from 1900 to the present?
A) Growth rates have risen continuously from 1900 to the present. B) Growth rates rose until the 1970s, slowed until the 1990s, rose again until 2005, and then slowed again to the present. C) Growth rates rose until the 1970s and then fell until the present. D) Growth rates have fallen continuously from 1900 to the present.
One of the initial problems facing the newly elected President Clinton was a large budget deficit.
Answer the following statement true (T) or false (F)
If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
a. increase by $50.
b. decrease by $50.
c. increase by $200.
d. decrease by $200.
Hasan eats two slices of pizza. What is the total utility of these two slices?
a. 8
b. 10
c. 18
d. 24