1. If real wages rise at the same time that nominal wages fall, we can safely...
1. If real wages rise at the same time that nominal wages fall, we can safely say that:
A. Deflation is occuring
B. Inflation is occuring
C. The living standard of hourly workers is decreasing
D. Taxes are lower
E. None of the above
2. If the CPI for 1984 is 127, how much did prices rise between the base year and 1984?
A. 27 percent
B. 127 Percent
C.1.27 Percent
D.73 percent
E. None of above
Homework Answers
a) "A"
if the real wages is rising and the nominal wages are falling then we can say that deflation in the market is occuring.
b) "A"
the price rise is 27%.
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