Suppose That in 2014,all Prices in the Economy Double and That

question 154

Multiple Choice

Suppose that in 2014,all prices in the economy double and that all wages and salaries also double.In 2014 you

• A)are worse off than you were in 2013 as you can no longer afford to buy as many goods and services.
• B)are better off than you were in 2013 as your salary is higher than it was in 2013 and you can now buy more goods and services.
• C)are no better off or worse off than you were in 2013 as the purchasing power of your salary has remained the same.
• D)cannot determine whether you are better off or worse off than you were in 2013,because the purchasing power of your salary cannot be determined.