Irrationality-rising real wage-excessive aggregate demand

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Reference no: EM13853604

"I'd rather have a 1% pay cut when prices fall by 3% than a 5% pay increase when the rate of inflation is 8%." This is an example of:

A. Irrationality

B. Rising real wage

C. Deflation always being better than inflation

D. Excessive aggregate demand

Reference no: EM13853604

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