If Real Salaries Decrease but Nominal Salaries Do Not,this Means

question 122

Multiple Choice

If real salaries decrease but nominal salaries do not,this means that

• A) the purchasing power of money has increased.
• B) prices have not changed.
• C) prices have risen.
• D) prices have fallen.

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Definitions:

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Solomon Asch

A psychologist known for his research on conformity, including the Asch conformity experiments.

Conformity

Changing one’s own behavior to match that of other people.

Realistic Conflict Theory

Theory stating that prejudice and discrimination will be increased between groups that are in conflict over a limited resource.