Which of these statements is not correct?
a.
if your nominal wages rise at a rat...
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Business, 04.11.2019 03:31, sirdre1982
Which of these statements is not correct?
a.
if your nominal wages rise at a rate higher than the inflation rate, you have received a “real” pay raise.
b.
if your nominal wages rise at exactly the rate of inflation, your purchasing power over time remains constant.
c.
if deflation occurs, you will receive a “real” pay raise regardless of what happens to your nominal wage.
d.
if your nominal wages rise at 4% while inflation rises at 5%, you have essentially received a “pay cut.”
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Answers: 2
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