The Social Security system of the United States is based on the pay-as-you-go principle. This indicates that funding of the benefits paid to current retirees comes primarily from
a. the income generated by the system's ownership of stock.
b. the tax payments of current workers.
c. the funds that current retirees paid into their personal savings accounts during their working years.
d. money created by the Federal Reserve system.
B
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Starting at point B in the diagram below, identify which combinations of points illustrate technological change. Give a brief explanation to support your answer
What will be an ideal response?
In the Friedman "Fooling Model" if P(e) is less than P then the labor supply curve in Figure 17-1 above
A) shifts leftward when workers realize their error. B) always shifts rightward. C) initially remains the same. D) Both A and C are correct.
Monopolistic competition is different from perfect competition in that every manufacturer
a. has a small monopoly, and differentiates the product. b. takes the product quality as given, and chooses price. c. takes output level as given, but must choose price. d. differentiates product, but cannot advertise successfully.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease