Which of the Following Statements Is (Are)correct

question 38

Multiple Choice

Which of the following statements is (are) correct?

• A)Not all economists believe that time inconsistency problems are important for real world monetary policy.
• B)Time inconsistency problems cannot explain higher inflation in the post-war era.
• C)Time inconsistency problems exist in contexts other than monetary policy.
• D)Both a and c
• E)All of the above

---

Definitions:

Nominal Wages

Wages paid to labor in current currency terms, without adjustment for inflation.

Industrially Advanced

Describes economies that have a significant level of development and industrialization, often characterized by high per capita incomes and widespread infrastructure.

Real Wages

Wages adjusted for inflation, reflecting the actual purchasing power of income earned from work.

Output per Worker

A measure of productivity calculated by dividing total output of goods or services by the number of workers involved in the production.