If there is inflation and we compare the changes in a nominal variable over time versus its real counterpart, such as the nominal wage rate versus the real wage rate, we find that the
A) two increase at about the same rate because of inflation.
B) real wage rate increases faster because of inflation.
C) nominal wage rate increases faster because of inflation.
D) two decrease at about the same rate because of inflation.
E) two change at a rate that does not depend on the inflation rate.
C
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If there is a decrease in both the supply and demand for a good, which of the following will definitely occur?
a. The price of the good will increase. b. The price of the good will decrease. c. The equilibrium quantity will increase. d. The equilibrium quantity will decrease.
Compared to the 1950-1973 period, output per worker ________ in the 1974-1995 period.
A. decreased more rapidly B. increased more slowly C. increased more rapidly D. decreased more slowly