Q1

ENDALE The following table is the nominal yearly wage of workers with only a high school degree and the LLEGE published CPI for the years 1980-2016. Use this information to calculate the real wage in 2016 dollars for the previous years: unt Year Nominal Wage CPI Real Wage (2016 Dollars) oard 1980 13,832 86.400 1986 17,888 110.800 1992 20,956 142.300 dar 1998 24,908 164.400 2004 29,848 191.700 2010 32,552 220.472 2016 35,984 242.821 35,984 Question: What is the adjustment factor, or the ratio of CPI(2016) to CPI(1980)? note: (round to the third decimal) O 2.910 O 3.547 3.000 O 2.810 _6822.jpg IMG_6823.jpg IMG_6824.jpg IMG_6826.jpg IMG_6827.jpg+ nanu x Canv X Chap x Q Chap x B 5 Typ x Q Chap x Quiz: x Cour x | Cour X | Para X | ARTI X Geor X Week X M (inge X a Uppdatera gcc.instructure.com/courses/28938/quizzes/149295/take D Question 2 0.27 pts Year Nominal Wage CP Real Wage (2016 Dollars) 1980 13,832 86.400 986 17,888 110.800 1992 20,956 142.300 998 24,908 164.400 2004 29,848 191.700 2010 32,552 220.472 2016 35,984 242.821 35,984 Question: Given the adjustment factor calculated in the previous question, what is the 1980 real wage in 2016 dollars? O $38,867.92 O $45,768.90 $34,567.89 $36,2345.76 jpg IMG_6823.jpg IMG_6824.jpg IMG_6826.jpg IMG_6827.jpg Visa allagcc.instructure.com/courses/28938/quizzes/14 $38,867.92 $45,768.90 $34,567.89 O $36,2345.76 D Question 3 0.27 pts Given the 1980 real wage in 2016 dollars calculated in the previous question, what is the change in the real wage between 1980 and 2016? Note: (round to the second decimal) 0 9.00% O -9.00% O 8.45% O -7.42% D Question 4 0.27 pts The following table has the same information from the previous table, but the CPI that has been adjusted to reflect the Boskin Commission's conclusion that the CPI was overstating inflation and IMG_6823.jpg IMG_6824.jpg IMG_6826.jpg IMG_6827.jpg Visa allaD Question 4 0.27 pts The following table has the same information from the previous table, but the CPI that has been adjusted to reflect the Boskin Commission's conclusion that the CPI was overstating inflation and the true inflation rate is 1.1 percentage points less than the previously published figures. Use this information to calculate the real wage in 2016 dollars for the previous years: Year Nominal Wage CPI Real Wage (2016 Dollars) 1980 13,832 60.825 1986 17,888 73.191 1992 20,956 88.202 1998 24,908 94.463 2004 29,848 104.393 2010 32,552 112.524 2016 35,984 116.096 35,984 Question: What is the adjustment factor based on the Boskin recommended data, or the ratio of CPI(2016) to CPI(1980)? note: (round to the third decimal) 6822.jpg IMG_6823.jpg IMG_6824.jpg IMG_6826.jpg IMG_6827.jpg Visa allmanu x Canv X Chap x Q Chap X B 5 Typ X Q Chap X Quiz: X Cour X Cour X Para X ARTI X Geor X Week X M (inge X C gcc.instructure.com/courses/28938/quizzes/149295/take a Uppdatera : 1992 20,956 88.202 1998 24,908 94.463 2004 29,848 104.393 2010 32,552 112.524 2016 35,984 116.096 35,984 Question: What is the adjustment factor based on the Boskin recommended data, or the ratio of CPI(2016) to CPI(1980)? note: (round to the third decimal) 2.345 1.909 O 2.890 O 1.809 Question 5 0.27 pts Given the Boskin adjusted 1980 real wage in 2016 dollars calculated in the previous question, what is the change in the real wage between 1980 and 2016? Note: (round to the second decimal) 822.jpg IMG_6823.jpg IMG_6824.jpg IMG_6826.jpg IMG_6827.jpg Visa alla XX Chap X B 5 Typ X Chap X ses/28938/quizzes/149295/take D Question 5 0.27 pts Given the Boskin adjusted 1980 real wage in 2016 dollars calculated in the previous question, what is the change in the real wage between 1980 and 2016? Note: (round to the second decimal) O 40.78% O .02% 36.28% O -3.67% D Question 6 0.27 ptsap X Chap X B 5 Typ X @ Chap X Quiz X Cour X Cour X Para X EARTH X Geor X ourses/28938/quizzes/149295/take U.UIT D Question 6 0.27 pts How would the 1.1 percentage point reduction in the CPI inflation rate revise or change the rate of real wage growth in the United States over the previous decades? The Boskin Commission adjustment caused the real wage growth between 1980 and 2016 to completely reverse direction. Under the BLS data, real wage growth was 8.45%, but under the Boskin adjusted data it was -3.67%. There 1.1 percentage point reduction in the inflation rate would not adjust the real wage growth. The 1.1 percentage point reduction would cause the real wage growth to increase in a positive direction. The Boskin Commission adjustment caused the real wage growth between 1980 and 2016 to completely reverse direction. Under the BLS data, real wage growth was -7.42%, but under the Boskin adjusted data it was positive 36.28%. Question 7 0.27 ptsQuestion 7 0.27 pts D How would the 1.1 percentage point reduction in the CPI inflation rate revise or change the level of wages in the United States? Were individual's incomes higher or lower than what economists previously had thought under the Bureau of Labor Statistics' (BLS) prior formulation of the CPI? O Under the Boskin adjusted data, the real wage in 1980 was $26,405.288. This is much lower than the real wage of $38,867.92 calculated using the BLS data. Therefore, under the Boskin adjusted data wages were much lower than previously thought. This means that if you adjust or tinker with historic inflation rates it will lead to a rewriting of economic history. O There is not enough available information to answer. The adjustment to the inflation rate would lead to the real wage in 1980 being much higher than previously thought. O Under the Boskin adjusted data, the real wage in 1980 was $26,405.288. This is much lower than the nominal wage of $13,832 calculated using the BLS data. Therefore, under the Boskin adjusted data nominal wages were much lower than previously thought. Question 8 0.27 pts.com/courses/28938/quizzes/149295/take D Question 8 0.27 pts The following table lists the current average Social Security benefit for retired workers in 2017 and projected Social Security benefits into the year 2027, based off 2% cost-of-living adjustments (COLAs) that are derived from the inflation rate in the CPI. Fill in and solve the blank spaces in the table. Year Social Security Benefit COLA @2% Social Security Benefit+COLA 2017 $16,524.00 $330.48 $16,854.48 2018 $16,854.48 $17,191.57 2019 $343.83 2020 $17,535.40 $350.71 $17,886.11 2021 $17,886.11 2022 $18,243.83 $364.88 $18,608.71 2023 $18,608.71 $372.17 $18,980.88 2024 $19,360.50 2025 $19,360.50 $387.21 $19,747.71 2026 $19,747.71 $394.95 $20,142.66 2027 $20,142.66 $402.85 Question: What will the Social Security benefit be at the end of 2027 after the 2% COLA is included?Chap X Chap X B 5 Typ X Q Chap X Quiz: X Cour X Cour X Para X ARTI X Geor X Week com/courses/28938/quizzes/149295/take 2020 $17,535.40 $350.71 $17,886.11 2021 $17,886.11 2022 $18,243.83 $364.88 $18,608.71 2023 $18,608.71 $372.17 $18,980.88 2024 $19,360.50 2025 $19,360.50 $387.21 $19,747.71 2026 $19,747.71 $394.95 $20,142.66 2027 $20,142.66 $402.85 Question: What will the Social Security benefit be at the end of 2027 after the 2% COLA is included? O $20,545.52 $20,142.66 O $402.85 O $19,747.71 D Question 9 0.27 pts following table lists the current average Social Security benefit for retired workers in 2017 andcom/courses/28938/quizzes/149295/take GF ( $19,747./1 D Question 9 0.27 pts The following table lists the current average Social Security benefit for retired workers in 2017 and projected Social Security benefits into the year 2027, based off 0.9% cost-of-living adjustments (COLAs) that are based on an inflation rate that is reduced by 1.1 percentage points according to the Boskin Commission recommendations. Fill in and solve the blank spaces in the table. COLA Year Social Security Benefit @0.9% Social Security Benefit+COLA 2017 $16,524.00 $148.72 2018 $150.05 $16,822.77 2019 $16,822.77 $151.40 $16,974.18 2020 $16,974.18 $17,126.94 2021 $154.14 2022 $17,281.09 $155.53 $17,436.62 2023 $17,436.62 $17,593.54 2024 $17,593.54 $158.34 $17,751.89 2025 $17,751.89 $159.77 2026 $161.20 $18,072.86 2027 $18,072.86 $162.66 Question:IV X Chap x Q Chap X B 5 Typ X Q Chap X Quiz: X Cour X Cour X Parar X | ARTI X Geor X Week x M ucture.com/courses/28938/quizzes/149295/take GR 2018 $150.05 $16,822.77 2019 $16,822.77 $151.40 $16,974.18 2020 $16,974.18 $17,126.94 2021 $154.14 2022 $17,281.09 $155.53 $17,436.62 2023 $17,436.62 $17,593.54 2024 $17,593.54 $158.34 $17,751.89 2025 $17,751.89 $159.77 2026 $161.20 $18,072.86 2027 $18,072.86 $162.66 Question: What will the Social Security benefit be at the end of 2027 after the 0.9% COLA is included? $18,235.51 $17,751.89 $162.20 $18,072.86 D Question 10 0.27 pts$18,235.51 O $17,751.89 O $162.20 O $18,072.86 Question 10 0.27 pts How would the 1.1 percentage point reduction in the CPI inflation rate impact Social Security benefits for retirees? It would reduce retiree's Social Security benefits because they would be receiving lower COLA increases. It would increase retiree's Social Security benefits because they would be receiving higher COLA increases. It would lead to an initial reduction in Social Security benefits, but over time they would be increased. O It would lead to an initial increase in Social Security benefits, but over time they would be decreased. Question 11Chap X Chap e.com/courses/28938/quizzes/149295/take It would lead to an initial increase in Social Security benefits, but over time they would be decreased. D Question 11 0.3 pts Analyze the difference between the initial Social Security benefits in 2021 under the 2.0% COLA and the 0.9% COLA scenario. Then analyze the difference between the initial Social Security benefits in 2027 under the 2.0% COLA and the 0.9% COLA scenario. Based on your observations, what can we say about the impact of the COLA reduction as time progresses and retirees are further into retirement? O Benefits will be increased dramtically because the economy will grow at a much faster rate. O The reduction in benefits under the 0.9% COLA scheme becomes smaller as time progresses. This means that the reduction in retirees benefits, compared to the 2.0% COLA scenario, would become smaller as time progressed. This would lead to a negligible reduction in living standards for those depending on Social Security benefits as they became older. The reduction in benefits under the 0.9% COLA scheme becomes larger as time progresses. This means that the reduction in retirees benefits, compared to the 2.0% COLA scenario, would become larger as time progressed. This would lead to a dramatic reduction in living standards for those depending on Social Security benefits as they became older. O It is impossible to tell how it will impact retiree's Social Security benefits