Question

42. If many people face a situation where the prices that they pay for food, shelter,...

42. If many people face a situation where the prices that they pay for food, shelter, and healthcare are rising much faster than the wages they receive for their labor, this is an example of __________ and standard of living will ___________.
Select the correct answer below:

a. inflation; improve

b. inflation; decline

c. deflation; improve

d. deflation; decline
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Answer #1

When price rise at a faster rate than the income,then the economy is in experiencing inflation.Standard of living will fall because real income falls during inflation.

Answer-B

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