« previous next »

Author Question: What, if any, is the impact of the CPI bias on government spending? What will be an ideal ... (Read 36 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?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

The Impact of Reduction Campaigns on Sids Rates The Impact of Reduction Campaigns on Sids Rates
An impact screwdriver used to remove slotted or Phillips head fasteners that cannot be broken loose ... An impact screwdriver used to remove slotted or Phillips head fasteners that cannot be broken loose ...
A typical battery-powered 3/8 inch drive impact wrench. A typical battery-powered 3/8 inch drive impact wrench.
The impact of climate change on natural ecosystems The impact of climate change on natural ecosystems
American Government: Roots and Reform, 2009 Edition American Government: Roots and Reform, 2009 Edition
Drugs and Publication Bias Drugs and Publication Bias
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library