Much of the U.S. government’s budget is tied to the Consumer Price Index (CPI), including Social Security benefits. Assume that the Social Security Administration (SSA) pays $980 million in benefits this year. If the CPI overstates inflation by 1 percent, how much money does the SSA stand to lose due to overpayments the following year?
a. $98,000
b. $980,000
c. $9.8 million
d. $98 million
c. $9.8 million
Economics
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If AVC=$15 and AFC=$10, then ATC=
a. $10 b. $5 c. $15 d. $25
Economics
In a self-regulating economy, inflationary and recessionary gaps
A) never occur. B) are eliminated by forces internal to the economy, without government intervention. C) are eliminated by timely actions of government policymakers. D) are the desirable results of microeconomic price adjustments.
Economics