Suppose workers and employers agree to a three-year wage contract under the expectation of 3 percent inflation, but inflation turns out to be 1 percent. In this case, ________ lost purchasing power, and ________ gained purchasing power.

Explain how the current U.S. tax system levies taxes on capital gains and earned interest. What does this mean for the costs of inflation?

Over the last two decades, what is the single factor that has caused the increase in the percent of GDP spent on the military?

A. our tremendous need for imported oil to fuel our inefficient transportation system and large military. B. our obligations to protect our friends in Asia. C. our obligations to provide protection for the Americas and the Caribbean island countries. D. play the role of world protector.