Suppose There Is a Decline in the Price Level

question 175

Multiple Choice

Suppose there is a decline in the price level. This means that

• A)the real wage decreases, and firms are willing to hire more people.
• B)the real wage is unaffected by the inflation rate.
• C)the real wage increases, and firms are willing to hire more people.
• D)the real wage decreases, and firms are willing to hire fewer people.
• E)the real wage increases, and firms are willing to hire fewer people.

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Definitions:

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