Reference no: EM13682772

1- suppose you received a 3 percent increase in your nominal wage. over the year inflation ran about 6 percent. which of the following is true?

a- your real wage fell
b- your nominal wage fell
c- both real and nominal waged decreased
d- although your nominal wage fell your real wage increased
e- both real and nominal waged increased

2- a decrease in person's real wage necessarily means
a- lower purchasing power
b- lower nominal wage
c- lower nominal wage after payment of taxes
d- higher nominal wage
e- a higher nominal wage after payment of taxes

3- the consumer price index measures the cost of
a- all goods and services produced in U.S. economy
b- all goods produced in U.S. economy
c- a fixed market basket of consumer goods and services in the U.S. economy
d- a fixed market basket of producer goods and services
e- food and energy in the U.S. economy

4- unanticipated inflation tends to redistribute income across groups in society. among the winners are
a- those who loan money
b- those on fixed incomes
c- small savers
d- those who borrow at fixed interest rate
e- those who hold large amounts of cash

5-inflation:
a- always reduces real income as long as it occurs at a positive rate
b- never reduces real income
c- reduces the real income of workers when wages increase more than price do
d- reduces the real income of workers when wages increase less than price do
e- increases the real income of the workers only when wages increase less than prices do