If the Anticipated Rate of Inflation Is 5 Per Cent

question 180

Multiple Choice

If the anticipated rate of inflation is 5 per cent and workers agree to a wage increase of 4 per cent,if the anticipated rate occurs,then nominal wages will

• A) fall by 1 per cent.
• B) rise by 4 per cent.
• C) rise by 5 per cent.
• D) fall by 5 per cent.

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