In Figure 2.5, notice that the revenue increases and spending savings get larger each year. Discuss why
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In Figure 2.5, notice that the revenue increases and spending savings get larger each year. Discuss why this occurs, focusing on how a change in the CPI compounds over time, much like compound interest on a bank account
Figure 2.5
Transcribed Image Text:
Deficit Reduction Using a Chained CPI 50 |Savings on benefits and other inflation-adjusted spending |Revenue incre ases on inflation-adjusted taxes 40 Totals 2014-2023 Spending savings: $216 billion Revenue increase: $124 billion 30 20 Total deficit reduction: $340 billion 10 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year Billions of dollars
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The Consumer Price Index CPI is a measure of the average change over time in the prices of goods and services that households purchase for their dayto...View the full answer
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Related Book For
Statistical Reasoning For Everyday Life
ISBN: 978-0134494043
5th Edition
Authors: Jeff Bennett, William Briggs, Mario Triola
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