Norma Complains That She Is Not Receiving the Full Benefit

question 88

Multiple Choice

Norma complains that she is not receiving the full benefit of her six percent raise,because inflation is two percent.You tell her that nominal incomes tend to rise with inflation,therefore

• A)she really is worse off.
• B)her real income increased eight percent.
• C)menu costs have reduced her purchasing power.
• D)she is committing the inflation fallacy.

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Definitions:

Parasympathetic Ganglion

A cluster of nerve cell bodies within the parasympathetic division of the autonomic nervous system, involved in rest and digest functions.

Ciliary Ganglion

A parasympathetic ganglion located in the orbit that plays a role in controlling the ciliary muscles of the eye, affecting lens shape and pupil size.

Otic Ganglion

A small parasympathetic ganglion located just below the ear, associated with the glossopharyngeal nerve, involved in salivation and lacrimation.

Parasympathetic Cranial

Pertaining to the cranial part of the parasympathetic nervous system, which helps control bodily functions when at rest, like saliva production and slowing the heartbeat.