Multiple Choice
Suppose workers receive a 5 percent increase in wages and prices are rising by 5 percent. Workers will experience
A) an increase in nominal wages and a decrease in real wages.
B) an increase in nominal wages and an increase in real wages.
C) an increase in nominal wages but real wages are unchanged.
D) a decrease in nominal wages and a decrease in real wages.
Correct Answer:
Verified
Correct Answer:
Verified
Q94: Suppose the economy has been at full
Q95: During hyperinflations, prices are<br>A) not changing.<br>B) decreasing
Q96: All else equal, if workers confuse real
Q97: Suppose you have $100 to invest for
Q98: In the short run, increases in the
Q100: Suppose that for a given year money
Q101: During hyperinflations, the real value of money<br>A)
Q102: Today, most economists agree with the monetarists
Q103: Explain why real and nominal rates of
Q104: When people expect inflation, they assume that