Multiple Choice
Suppose the economy consists of two distinct groups: wage earners and goods sellers.If the price level increases by 30 percent and real wages increase by 30 percent,
A) there will be no redistribution of purchasing power between goods sellers and wage earners
B) purchasing power will be redistributed from wage earners to goods sellers
C) purchasing power will be redistributed from goods sellers to wage earners
D) nominal wages will increase by 90 percent
E) nominal wages will decrease by 60 percent
Correct Answer:
Verified
Correct Answer:
Verified
Q21: If the Consumer Price Index was 102.2
Q22: Which of the following are considered sources
Q23: Improvements in the quality of consumer goods
Q24: The Consumer Price Index (CPI)is a weighted
Q25: Which of the following would be included
Q27: A real variable is<br>A) measured in terms
Q28: Your friend Shahla argues that inflation is
Q29: Assume you are lending money to a
Q30: If you lend money at a nominal
Q31: Substitution bias<br>A) is one factor that causes