Which of the Following Is Not an Effect of Inflation

question 29

Multiple Choice

Which of the following is not an effect of inflation that is troublesome to consumers?

• A) Household incomes may be rising slower than the overall prices.
• B) The purchasing power of people's savings would decrease.
• C) Workers' wages may be rising faster than the overall price level.
• D) Their standard of living will fall if their household has a fixed nominal income.

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Definitions:

Flextime

An alternative work pattern that enables employees to set their own daily work schedules.

Job Sharing

An alternative work pattern in which more than one person occupies a single job.

Labor Pool

The supply of available workers in a particular region or industry.

Demographic

Statistical data relating to the population and particular groups within it, often considered for purposes of market analysis, policy making, and sociological research.