Over half of government spending is discretionary spending

If a private wage contract is agreed upon with a cost of living adjustment such that wage hikes are equal to increases in the CPI,

A) the employer benefits because wages will rise less than the change in actual prices. B) workers exactly keep pace with changes in the cost of living. C) workers benefit because the CPI increases more rapidly than does the cost of living. D) the CPI bias means that workers benefit if the price level rises and the employer benefits if the price level falls. E) the CPI bias means that workers benefit if the price level falls and the employer benefits if the price level rises.

Which of the following would not affect this year's GDP?

a. the paint you purchased when painting your house b. the new car your parents purchased and gave to you as a birthday present c. a Gateway computer purchased by the U.S. government d. the value of a used car you purchased, at its sale price