If You Negotiated a Salary Based on an Anticipated Inflation

Multiple Choice

If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent

A) the purchasing power of your real wages would be more than you anticipated.
B) your employer would have gained at your expense.
C) your real wage will increase, but your nominal wage will decrease.
D) the purchasing power of your wages will not change, since purchasing power is based on your nominal wage.