If Nominal Wages Rise Faster Than the Price Level, Then

question 64

Multiple Choice

If nominal wages rise faster than the price level, then real wages have ________ and the purchasing power of income has ________.

• A)fallen; fallen
• B)fallen; risen
• C)risen; risen
• D)risen; fallen

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Definitions:

Profits

The financial gain that a business makes after subtracting its expenses from its revenue, indicating the overall financial success and viability of the enterprise.

Marketing Objectives

Specific, measurable goals set by a company to guide its marketing strategies and efforts.

Decision-making Consistency

The extent to which a consumer or organization consistently applies the same criteria or processes when making choices.

Business-to-business Accounts

Commercial transactions or relationships where products or services are exchanged between businesses rather than between businesses and consumers.