Word: adjusted
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Most economists suggest that another inflation indicator could be used to calculate cost of living adjustments. One possible alternative is the index used to adjust the gross national product for inflation. It is called the G.N.P. deflator and measures price increases in the whole economy and not just for consumer products. In the past year, for example, the CPI has increased 14%, while the more broadly based G.N.P. deflator has risen by only...
...soon as the inflation figure was announced, Israelis pulled out pocket calculators and began computing the value of their bank accounts, and merchants began adjusting prices. Banks, retirement funds and other financial institutions are automatically required to adjust the value of savings accounts, pensions and life insurance policies to offset fully the losses caused by the cost of living increases. A person's bank balance, for example, is immediately raised in line with the previous month's inflation. Every three months, employers must add 80% of the last quarter's inflation to their workers' wages. Informally...
...cent, across-the-board individual tax cut plan (businesses would be allowed to deduct new investment on income taxes more quickly) would lead to an eventual three-year 30-per-cent total reduction--a measure supported by many Republicans in the house. The more drastic slash would also adjust rates for inflation annually. Carter himself has said he would review possible tax cut legislation after election heat has subsided, vowing that he would not be tempted by the potential vote-getting power of a reduction in taxes. After all, the call for a tax cut has long been heard from...
...overall complaint, the Soviets say the Carter Administration has been guilty of "vacillation and inconsistency," of shifting policies and switching signals. "The present leadership in Washington has never adopted one line to which we could adjust or respond," says a Soviet diplomat, echoing a view shared by many critics of the Administration in Western Europe and the U.S. The Soviets are especially bitter over one shift in Carter's policy. They say he deliberately tricked the U.S.S.R. into thinking that it might be a diplomatic partner in the Middle East. In the fall of 1977, a joint U.S.-Soviet statement...
...officials considered 4% unemployment to be in effect full employment. Any attempt to push the jobless rate below that would only result in higher inflation. Today many specialists believe that such a rate is much steeper. Says Stanford Economist Robert Hall: "For the foreseeable future, we may have to adjust to a full employment or sustainable unemployment rate of between 6.5% and 7%." That would mean an additional 2 million to 3 million Americans without work...