When the price of gasoline rises by 40 percent, but your salary remains the same, it is an example of a decline in your:

Question

Quizplus · Accepted Answer

When the price of gasoline rises by 40 percent without an increase in your salary, it means you can buy less gasoline with the same amount of money. This is a clear example of a decline in your purchasing power, as your ability to purchase goods and services with the same amount of income has decreased.

When the Price of Gasoline Rises by 40 Percent, but Your