Because the CPI overstates the rate of inflation, Cost of Living Adjustments for wages that are based on it will
A. cause these wages to rise more slowly than they otherwise would.
B. cause these wages to rise more quickly than they otherwise would.
C. never have to account for this to get it right.
D. be correct.
Answer: B
You might also like to view...
If a corporation's retained earnings are expected to create future profits, the market price of the firm's stock will ________ and create a ________ for stockholders if the stock is sold
A) decrease; capital gain B) decrease; loss of wealth C) increase; loss of wealth D) increase; capital gain
In a sequential game, one firm will act first and then other firms will respond
Indicate whether the statement is true or false
Which of the following is always a characteristic of the oligopoly market structure?
a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. All sellers produce identical products. d. Easy, low-cost entry and exit.
The value of a country's final goods and services after adjusting for changes due to inflation is called its _____
a. real GDP b. nominal GDP c. disposable income d. net national product e. full employment output