Reference no: EM13800379

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