In the 1970s,a period of a high rate of inflation,a news magazine article listed people who were losing from inflation because their real purchasing power was falling.Those who lost the most were university professors.Which of the following explains this?
A) The marginal benefit of their work was falling.
B) Their wage rates did not increase as much as the CPI.
C) Their wage rates increased more rapidly than the CPI.
D) The professors suffered from the CPI bias.
E) The professors' market basket was different than the market basket used to calculate the CPI.
Correct Answer:
Verified
Q224: The GDP price index equals
I.nominal GDP divided
Q225: The nominal wage rate is the
A)minimum hourly
Q226: If we look at real and nominal
Q227: The real interest rate is equal to
Q228: The average starting salary for a history
Q230: Nominal GDP is $12.1 trillion and real
Q231: If you have the cost of the
Q232: Looking at real and nominal interest rates
Q233: In 2011,apples cost $1.49 a pound.Suppose the
Q234: In the United States for the last
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents