Workers in country A receive an increase in wages of 10 percent at the same time the inflation rate in country A is 8 percent. Workers in country B receive an increase in wages of 3 percent and the inflation rate in country B is 1 percent. In which country are workers better off?
a. Country A because their real wages rise by 18 percent.
b. Country A because their real wages rise by 10 percent.
c. Country B because the inflation rate is lower.
d. Neither country because the increase in real wages is the same.
d
Economics
You might also like to view...
Which of the following is an example of mixed bundling?
A) a suit jacket B) dinner at a buffet restaurant C) a desktop computer and monitor D) All of the above.
Economics
Which of the following is an example of moral hazard?
A. A college student drinking alcohol and partying instead of studying. B. A homeowner with fire insurance not clearing bush around their property. C. A chronically sick person using hospital services. D. A chronically sick person buying more health insurance than average.
Economics