What is one practical use by the federal government for the Consumer Price Index (CPI)?
a. A decrease in CPI means that the government must cut salaries.
b. It helps determines the cost-of-living increases in social security benefits.
c. It helps determines whether to raise taxes.
d. It determines whether the government is paying too much for services.
e. An increase in CPI triggers an increase in the regulation of the largest private companies.
Question -2-An estimate of the total money value of all of the goods and services produced in a given one-year period is the
a. inflation rate.
b. tax base.
c. gross domestic product.
d. foreign product ratio.
e. ratio of goods to services.
Question -3-The primary argument of supply-side economic theory is that
a. too much demand for services will cause the supplier side to crash.
b. there must be a supply of goods before there is a demand.
c. high taxes take money out of the economy that would otherwise be invested in goods and services.
d. high taxes give government the funds it needs to stimulate the economy.
e. the capitalist system is self-destructive.
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