If Nominal Wages Rise Slower Than the Price Level, Then

question 39

Multiple Choice

If nominal wages rise slower 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:

Incapacity

Lacking the ability, power, or legal qualification to act, make decisions, or give consent.

Unenforceable Agreement

A contract or agreement that, due to certain defects or legal deficiencies, cannot be legally enforced or compelled by a court.

Compensatory Damages

Financial compensation awarded to a plaintiff to redress the loss or injury that has been suffered.

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate for losses and is intended to punish the wrongdoer.