If the Inflation Rate Equals Zero, Then a Worker's Real

question 56

Multiple Choice

If the inflation rate equals zero, then a worker's real wage will fall when:

• A)the nominal wage increases by less than 1% per year.
• B)the nominal wage decreases.
• C)the nominal wage is constant.
• D)relative prices increase.

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Definitions:

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how environmental stimuli can trigger responses in animals.

Humanistic Theories

A psychological perspective focusing on the individual's capacity for self-actualization, personal growth, and inherent goodness.

Bias Against Women

Prejudice or unfair treatment directed towards women, often based on traditional gender roles or stereotypes.

Classical Conditioning

An educational process in which a response originally produced by a second stimulus is ultimately triggered by the first stimulus alone, due to the repeated pairing of two stimuli.