Kat's Wages for December Are $8,500

question 166

Multiple Choice

Kat's wages for December are $8,500. At the end of November, her cumulative gross earnings were $112,000. How much will her employer take out for the OASDI portion of social security for December? (Round your final answer to the nearest dollar.)

• A)$403
• B)$497
• C)$527
• D)$650

---

Definitions:

Cyclical Unemployment

Unemployment caused by fluctuations in the economic cycle, such as expansions and recessions, often related to changes in demand.

Real Rate

The real rate is the interest rate adjusted for inflation, reflecting the true cost of borrowing or the real yield on an investment.

Nominal Rate

The stated interest rate of an investment or loan, without adjustment for inflation or other factors that affect the real rate of return.

Rate Of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a period of time.