If the Inflation Rate in an Economy Is 5 Percent

question 92

Multiple Choice

If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent,then _____.

• A)nominal income declines and real income increases
• B)both nominal income and real income increase by 5 percent
• C)nominal income increases and real income declines
• D)both nominal income and real income decrease by 5 percent
• E)nominal income increases by 5 percent and real income is unchanged

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Definitions:

HR

Stands for Human Resources, the division of a business that manages all aspects related to employees, including recruitment, training, compliance, and benefits.

Attitudes

Perceptions or opinions about organizational characteristics.

Organizational Context

The combination of internal and external factors, including the regulatory environment, competition, and corporate culture, that influence an organization's activities and strategies.

Costs Of Turnover

Refers to the financial impact incurred by an organization due to the departure of an employee, encompassing separation, replacement, and training costs for new hires.