Suppose That in 2019, All Prices in the Economy Double

question 51

Multiple Choice

Suppose that in 2019, all prices in the economy double and that all wages and salaries have also doubled.In 2019 you

• A)are worse off than you were in 2018 as you can no longer afford to buy as many goods and services.
• B)are better off than you were in 2018 as your salary is higher than it was in 2018 and you can now buy more goods and services.
• C)are no better off or worse off than you were in 2018 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 2018 because the purchasing power of your salary cannot be determined.
• E)are better off as an increase in your income always increases your options.

---

Definitions:

Cross-Pollination

The sharing and mixing of ideas, practices, and cultures between different sectors, organizations, or groups to innovate and solve problems.

Insight

The ability to obtain a precise and profound instinctual comprehension of a person or object.

Verification

The process of confirming the accuracy, truthfulness, or validity of something through the presentation of evidence or logical argument.

Creative Process

A series of thought actions and operations leading to an innovative or creative outcome, often characterized by originality and expressiveness.