Real Wages Can Be Cut Without Cutting Nominal Wages If

question 26

Multiple Choice

Real wages can be cut without cutting nominal wages if:

• A)the rate of inflation is positive.
• B)the rate of inflation is zero.
• C)the rate of inflation is negative.
• D)there is deflation.

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Definitions:

Cards

Pieces of thick, flat material, often made of paper or plastic, used for various games, information storage, or special occasions.

All Aces

A term often used to describe a situation, hand, or outcome that is the best possible under the circumstances.

Probability

A calculation of the chance of a certain event taking place, denoted by a number between 0 and 1.

Cards

Paper or plastic rectangular pieces, often used for playing a variety of games, or as a medium for storing information such as identification or banking details.