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:

Imprisoned

The state of being confined in prison as a form of punishment or while awaiting trial, resulting in significant restrictions on freedom.

Revenge

The act of inflicting harm or punishment on someone in retaliation for a wrong done to oneself or others.

Unpleasant Conditions

Situations or environments that are difficult, uncomfortable, or disagreeable to endure or experience.

Freedom

The state of being free or at liberty rather than in confinement or under physical restraint; often implies the ability to act according to one's own will.