In Nation A,the Price Index Rises from 110 to 120

question 152

Multiple Choice

In Nation A,the price index rises from 110 to 120 in a particular year.In the same year,the price level rises from 120 to 130 in Nation B.This means

• A) inflation in both nations is 10 percent.
• B) Nation B suffers from hyperinflation.
• C) both nations suffer from hyperinflation.
• D) Nation A is experiencing inflation but Nation B is experiencing deflation.
• E) Nation A is experiencing inflation of less than 9.1 percent and Nation B is experiencing inflation of less than 8.4 percent.

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Definitions:

Pay Differentials

Variations in pay for employees, often based on factors such as geographic location, job duties, industry standards, or skill levels.

Pay Structure

The systematic organization of pay rates within a company, defining compensation levels for different jobs or grades.

Compensation

The total amount of the monetary and non-monetary pay provided to an employee in return for work performed as required.