A CPI miscalculation that overstates its increase by 0.8 percentage points will cause
A. Social Security's Maximum Taxable Earnings to rise too quickly.
B. Social Security's Maximum Taxable Earnings to rise too slowly.
C. the price of goods to rise.
D. the price of services to rise.
Answer: A
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Even when people know the purchasing power of the currency is declining, they continue to use the currency because
A) they have no other choice. B) its value is holding better than any other asset. C) its value is still predictable. D) it still has some intrinsic value.
If the economy is in equilibrium and suddenly the level of planned investment increases by $2 billion, national income will increase by
a. $2 billion and stabilize at that level. b. less than $2 billion because of MPS. c. more than $2 billion because of MPC. d. less than $2 billion because of MPC.
Exhibit 16-1 Income for two persons NameIncome Elaine$100,000 Daniel$ 40,000 In Exhibit 16-1, if the income tax system is progressive, then:
A. Elaine and Daniel will face the same tax rate and will have tax bills the same size. B. Elaine and Daniel will face the same tax rate but have tax bills that are different sizes. C. Elaine will face a higher tax rate and will have a larger tax bill than Daniel. D. Elaine will face a lower tax rate and will have a smaller tax bill than Daniel.
The simple circular flow model shows that:
A. households are on the buying side of both product and resource markets. B. businesses are on the selling side of both product and resource markets. C. households are on the selling side of the resource market and on the buying side of the product market. D. businesses are on the buying side of the product market and on the selling side of the resource market.