If You Negotiated a Salary Based on an Anticipated Inflation

question 82

Multiple Choice

If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent

• A) the purchasing power of your real wages would be more than you anticipated.
• B) your employer would have gained at your expense.
• C) your real wage will increase, but your nominal wage will decrease.
• D) the purchasing power of your wages will not change, since purchasing power is based on your nominal wage.

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Definitions:

Noble Gases

A group of chemical elements with very low reactivity, including helium, neon, argon, krypton, xenon, and radon.

Periodic Table

A tabular arrangement of chemical elements, organized on the basis of their atomic numbers, electron configurations, and recurring chemical properties.

Rock-forming Minerals

Minerals that make up a significant part of the Earth’s crust, playing a key role in the formation of rocks.

Argonites

A misspelling or incorrect term for aragonite, which is a carbonate mineral, one of the two most common, naturally occurring, crystal forms of calcium carbonate, CaCO3 (the other being calcite).