The fact that the CPI is a biased measure of the inflation rate means government outlays will

A) increase at a slower rate than the actual inflation rate.
B) increase at the same rate as the actual inflation rate.
C) increase at a faster rate than the actual inflation rate.
D) sometimes increase faster and sometimes increase slower than the actual inflation rate depending on whether the actual inflation rate exceeds 1.1 percent per year or is less than 1.1 percent per year.
E) None of the above because the bias in inflation measured using the CPI has nothing to do with government outlays.

C

Economics

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The occurrence of the Great Depression offered evidence that supported

a. the classical theory of economics b. the need for the government to practice the policy of laissez faire c. the need for the government to control prices d. Congress to take action to stop rising prices e. the Keynesian idea that the government needed to guide the economy

Economics

It is assumed that the marginal benefit of air cleanliness falls with the degree of cleanliness since

A) the marginal cost of air cleanliness increases. B) air cleanliness is a public good and not a private good. C) the marginal utility of air cleanliness falls with the degree of cleanliness. D) the generation of pollution should be considered an externality.

Economics