« previous next »

Author Question: What, if any, is the impact of the CPI bias on government spending? What will be an ideal ... (Read 40 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 immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Volcanic plateaus (red) and impact basins (blue) dominate this topographic map of Mars Volcanic plateaus (red) and impact basins (blue) dominate this topographic map of Mars
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
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
Researchers and Research Spending, 2009 Researchers and Research Spending, 2009
Confirming the Confirmation Bias Confirming the Confirmation Bias
Confirming the Confirmation Bias Confirming the Confirmation Bias
Video: Stress and Immune System Animation

For a complete list of videos, visit our video library