If the Prices of All Goods and Services Double, and Wages

question 41

Multiple Choice

If the prices of all goods and services double, and wages and salaries do likewise, how are individuals and the nation as a whole affected?

• A)There is no effect on real output.
• B)The inflation rate is doubled.
• C)Real wages fall.
• D)All of the above are correct.

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Definitions:

Created

Brought into existence or formed out of nothing.

Testamentary Capacity

The legal ability of a person to make a valid will, usually involving being of sound mind and of certain age.

Testator

An individual who has made a will or testament in which they name one or more persons to manage their estate and provide for the transfer of their property at death.

Nonprobate Property

Property that is not part of a probate estate.