Question

Suppose the average nominal wage in an economy has increased by 22% in the last ten...

Suppose the average nominal wage in an economy has increased by 22% in the last ten years. At the same time, the rate of inflation has been 13%. Which of the following statements is true?

rev: 04_09_2018

Multiple Choice

  • In terms of the buying power of their wages, workers are better off.

  • In terms of the buying power of their wages, workers are worse off.

  • We do not have enough information to determine the buying power of the workers’ wages.

  • In terms of the buying power of their wages, workers are no better off now than ten years earlier.

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