If real salaries decrease but nominal salaries do not,this means that
A) the purchasing power of money has increased.
B) prices have not changed.
C) prices have risen.
D) prices have fallen.

Question

Quizplus · Accepted Answer

Nominal salaries refer to the actual amount of money paid, whereas real salaries take into account inflation and purchasing power. If real salaries decrease but nominal salaries do not, this means that prices have risen, resulting in a decrease in the purchasing power of money.

If Real Salaries Decrease but Nominal Salaries Do Not,this Means