If the actual price level for goods and services turns out to be higher than expected, workers will
A)find their purchasing power is higher than expected.
B)realize higher real wages.
C)seek higher nominal wages.
D)ask for wage decreases to keep their employment.

Question

Quizplus · Accepted Answer

If the actual price level for goods and services turns out to be higher than expected, workers will seek higher nominal wages to maintain their purchasing power. This is because the increased prices will reduce the value of their wages in terms of the goods and services they can buy.

If the Actual Price Level for Goods and Services Turns