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.The price level was actually rising faster than nominal wages over the same period,so real income would be lower.

Question

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.The price level was actually rising faster than nominal wages over the same period,so real income would be lower.

Quizplus · Accepted Answer

The Answer of  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.The price level was actually rising faster than nominal wages over the same period,so real income would be lower.

During the Time Period Represented in Figure 7