Use the following figure to answer the questions : Figure 7.3 :
-During the time period represented in Figure 7.3,the purchasing power of the average worker
A)Increased because nominal wages increased.
B)Decreased because real income decreased.
C)Stay the same because COLAs probably kept purchasing power approximately constant.
D)Decreased because nominal income decreased.

Question

Use the following figure to answer the questions : Figure 7.3 : 
-During the time period represented in Figure 7.3,the purchasing power of the average worker
A)Increased because nominal wages increased. 
B)Decreased because real income decreased. 
C)Stay the same because COLAs probably kept purchasing power approximately constant. 
D)Decreased because nominal income decreased.

Quizplus · Accepted Answer

The figure shows that while nominal wages increased, inflation also increased at a higher rate, resulting in a decrease in real income and purchasing power for the average worker.

Use the Following Figure to Answer the Questions : Figure