« previous next »

Author Question: What, if any, is the impact of the CPI bias on government spending? What will be an ideal ... (Read 44 times)

fagboi

  • Hero Member
  • *****
  • Posts: 535
on: Jun 29, 2018
What, if any, is the impact of the CPI bias on government spending?
 
  What will be an ideal response?

Question 2

A graph shows the wages of factory workers. The slope of the line is positive for periods when the wage rate is
 
  A) falling.
  B) rising.
  C) high but not rising any higher.
  D) low.


ally

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

About one-third of government outlays, such as Social Security, are linked to the CPI so that these sources of government spending increase when the CPI increases. Because the CPI overstates the actual inflation rate, government spending increases by more than is warranted by inflation. Hence the CPI bias increases the amount of government outlays.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
A black impact socket. Always use an impact-type socket whenever using an impact wrench to avoid ... A black impact socket. Always use an impact-type socket whenever using an impact wrench to avoid ...
La Niña: The impact of natural cycles La Niña: The impact of natural cycles
Growth of Government Spending, 1870–2009 Growth of Government Spending, 1870–2009
Researchers and Research Spending, 2009 Researchers and Research Spending, 2009
Video: Phases of the Female Reproductive Cycle - Hormonal regulation

For a complete list of videos, visit our video library