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Which of the Following Characterizes the Relationship Between Wages and Inflation

Question 100

Multiple Choice

Which of the following characterizes the relationship between wages and inflation?  


A)  During periods of low inflation, real wages are constant and nominal wages decline. 
B)  During periods of high inflation, real wages increase more than nominal wages. 
C)  During periods of inflation, real wages will change if nominal wages are constant. 
D)  During periods with a constant inflation rate, real wages will NOT change unless nominal wages do.

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