Imagine that after completing your economics course (you get an a, of course) you are at a family gathering. your grandmother asks you about a news story she read this morning. the story explained that when the government adjusts social security payments for inflation, it generally uses the cpi-w, which is the consumer price index for urban wage earners and clerical workers. because senior citizens spend a lot more than average on medical care, adjustments to their social security payments are not keeping up with their cost of living. your grandmother has two questions: 1. last year i received $15,000 per year from the government. the story said that the cpi increased from 144 to 162. how much will i get this year? 2. why might this additional money not allow me to maintain my standard of living?
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Imagine that after completing your economics course (you get an a, of course) you are at a family ga...
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