Answer:
take a complex, real-world issue and simplify it down to its essentials.
Explanation:
A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.
Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.
In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.
Answer: b. using a fixed basket of goods and, therefore, will tend to overstate inflation.
Explanation:
CPI uses a fixed basket of goods each year and measure inflation by monitoring the changes in this basket over several years/ periods.
This has the tendency to overstate inflation however, due to three(3) main reasons: Substitution bias, Quality bias and New product bias.
With substitution bias, the CPI does not take into account that when products increase in price, people will substitute them for lower priced goods. Quality bias means that CPI does not account for change in quality. New Product bias means that CPI does not account for new and better products as it uses a fixed basket.
Put together these three can cause CPI to overstate inflation by as much as 1% sometimes.
it is false that Chris and Marcie must claim the EIP3 of $2,800 as taxable income on their 2021.
The term EIP3 refers to an early payment of next year's Recovery Rebate Credit.
The Recovery Rebate Credit means a tax credit that is designed to help the taxpayers during a time of disaster, that is, its gives an advance of the credit means so that the money they will get at tax time is available much sooner.
Hence, it is false that Chris and Marcie must claim the EIP3 of $2,800 as taxable income on their 2021.
Therefore, the Option B is correct.
Read more about EIP3
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Based on the information regarding the W-4, the thing that should be done next will be C. Request to fill out a new W-4 from his employer.
The W-4 form simply tells the employer, the filing status of the employee, amount of credits, multiple jobs adjustment, amount of other income, deductions, etc that are needed to compute the federal income tax.
Since Miguel was single when he started working with the company but was now married, he should request to fill out a new W-4 from his employer.
Learn more about tax on:
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With continuous interest,
where
F=future value
P=principal = 1000
r=rate=5%
t=time=3 years
Answer: The accumulated amount after three years is
$1161.83
