What is inflation positively correlated with?
A) nominal wage growth
B) real interest rate
C) productivity growth rate
D) the price level

Name: What is inflation positively correlated with? A) nominal wage growth B) real interest rate C) productivity growth rate D) the price level
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Question

Quizplus · Accepted Answer

Inflation is positively correlated with nominal wage growth because as prices rise, workers often demand higher wages to maintain their purchasing power.

What Is Inflation Positively Correlated With