Inflation Is the Rate of Change of Average Prices in the Economy.In

question 60

Multiple Choice

Inflation is the rate of change of average prices in the economy.In general,we can say that inflation

• A)benefits creditors if it is unanticipated.
• B)has no real effects if it is unanticipated.
• C)increases the purchasing power of money.
• D)reduces the real value of existing nominal debt.
• E)increases the real value of fixed money incomes.

---

Definitions:

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, given by an employer to an employee.

Union Contracts

Agreements between labor unions and employers detailing wages, working conditions, and rights for union members.

Nonunion Workers

Employees who are not members of a labor union and do not have their employment terms negotiated collectively.

Union Density

The ratio of workers who are union members to the total number of workers in a given region or sector, indicative of the strength and reach of labor unions.