The Group of Goods and Services Used to Compute the GDP

question 153

True/False

The group of goods and services used to compute the GDP deflator changes automatically over time, but the group of goods and services used to compute the CPI does not.

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Definitions:

Net Pay

The amount of money an employee takes home after deductions like taxes and retirement contributions have been subtracted.

FICA Tax

A mandatory tax used to fund the United States Social Security and Medicare programs, deducted from the wages of employees.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowance

A claim made by an employee on a W-4 form to reduce the amount of tax withheld from their paycheck.