In which of the following situations would an individual experience an increase in real wages?
a. Receiving a 5 percent increase in nominal wages while inflation was 6 percent
b. Taking a 3 percent cut in nominal wages while deflation was 4 percent
c. Taking a 1 percent cut in nominal wages while inflation was 1 percent
d. Receiving a 3 percent increase in nominal wages while inflation was 3 percent
e. Receiving no increase in nominal wages while inflation was 0 percent
B
You might also like to view...
Population growth is more likely to contribute to economic growth when
A) economic freedom is present. B) capital accumulation is limited. C) technological progress is limited. D) the labor force participation rate does not increase.
A policy change represents a:
A. change in one aspect of the government's policy. B. systemic change in the relationship between the economy and the government. C. change in the political system. D. change from one economic system to another.