If real salaries increase but nominal salaries do not, this means that:
A. the purchasing power of money has decreased.
B. prices have not changed.
C. prices have risen.
D. prices have fallen.
Answer: D
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During the 2008 financial crisis, it became:
A. easier for individuals but harder for businesses to obtain loans. B. harder for individuals but easier for businesses to obtain loans. C. harder for both individuals and businesses to obtain loans. D. easier for both individuals and businesses to obtain loans.
Consumers make all economic decisions in a mixed economy
Indicate whether the statement is true or false
A price taker is a buyer or seller who:
A. has complete control over setting the market price. B. can influence the market price. C. has no control over setting the market price. D. has the goal of maximizing market share, not profits.
An increase in the price of a close substitute for good A will:
a. increase demand, increase price and increase the quantity exchanged. b. increase demand, increase price and decrease the quantity exchanged. c. increase supply, increase price and increase the quantity exchanged. d. decrease demand, decrease price and decrease the quantity exchanged.