Answer to Question #275000 in Macroeconomics for kika

Question #275000

Suppose nominal wages never changed. What would be the significance of such a characteristic?


1
Expert's answer
2021-12-08T10:43:11-0500

If nominal wages are not altered, inflation will be positive, and real earnings will decrease or fall; but, if nominal wages are modified, inflation will be negative, and real wages will increase or grow.


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