If Your Wages Are Indexed So That They Automatically Adjust

question 62

Multiple Choice

If your wages are indexed so that they automatically adjust for inflation, in a period of continued high inflation, the cost of the goods and services you buy ____ and your nominal income ____.

• A)​decreases, decreases
• B)​increases, increases
• C)​decreases, remains the same
• D)​increases, remains the same

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Definitions:

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