According to Figure 7.3,prices and wages were rising,so

Question

Quizplus · Accepted Answer

When prices and wages are rising, sellers of output are better off because they are receiving higher prices for their goods or services, while wage earners are seeing their real wages decline as the cost of living rises. Therefore, option A is the correct answer. Option B is incorrect because some groups may have benefited from the higher prices, such as producers or owners of capital. Option C is incorrect because inflation usually has redistributive effects, and option D is incorrect because stagflation refers to a situation where inflation and unemployment are both high, and there is no information about unemployment in the question.

According to Figure 7.3,prices and Wages Were Rising,so