During inflationary periods
a. all prices rise at the rate of inflation.
b. real wages must necessarily decline.
c. some prices may fall.
d. relative prices do not change.
c
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In an expansion, federal tax receipts increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) the effect of deficit spending.
The unemployment rate measures the: a. number of people in the labor force divided by the adult population
b. percentage of people in the labor force who are unemployed. c. percentage of people in an economy who have dropped out of the labor force. d. number of people in the adult population who are looking for work. e. number of people in the labor force who are not working.