The bias in the CPI affects government outlays because the overstatement of inflation
A) means that tax receipts are less than what is needed to cover government outlays.
B) decreases government outlays by more than what is justified.
C) increases government outlays by more than what is justified.
D) decreases social welfare benefits.
E) increases fiscal pressure.
C
Economics
You might also like to view...
Positive supply shocks can have a tendency to ________ costs of production and ________ the inflation rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Economics
One reason the U.S. government is sensitive to demands by the elderly is that the elderly have higher voter participation rates than members of other age groups
a. True b. False
Economics