If Actual Inflation Is Greater Than Expected Inflation,what Is the Relationship

question 189

Multiple Choice

If actual inflation is greater than expected inflation,what is the relationship between the actual real wage and the expected real wage?

• A)The actual real wage will be lower than the expected real wage.
• B)The actual real wage will be higher than the expected real wage.
• C)The actual real wage will be equal to the expected real wage.
• D)The relationship between the actual real wage and the expected real wage cannot be predicted.

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Definitions:

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