Which of these statements is NOT correct? A. If deflation occurs, you will receive a “real”...
Which of these statements is NOT correct?
| A. |
If deflation occurs, you will receive a “real” pay raise regardless of what happens to your nominal wage. |
|
| B. |
If your nominal wages rise at a rate higher than the inflation rate, you have received a “real” pay raise. |
|
| C. |
If your nominal wages rise at exactly the rate of inflation, your purchasing power over time remains constant. |
|
| D. |
If your nominal wages rise at 4% while inflation rises at 5%, you have essentially received a “pay cut.” |
Homework Answers
All statement are correct except that If deflation occurs , you will receive a "real" pay raise regardless of what happens to your nominal wage . Hence,option(A) is correct.
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Which of these statements is NOT correct?
A.
If deflation occurs, you will receive a “real”...
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