A COLA is
A. An automatic adjustment of nominal income to the rate of inflation.
B. An inflation rate of at least 200 percent, lasting more than one year.
C. A price index that refers to all goods and services included in GDP.
D. A mortgage that adjusts the nominal interest rate to changing rates of inflation.
Answer: A
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A) an increase in wage rate B) an increase in the output price C) a specific tax imposed on the firm's output D) a decrease in the output price
Why do airlines tend to lower ticket prices in the winter?
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