Author Question: Pure inflation occurs when A) nominal wages rise faster than all prices. B) all prices rise ... (Read 72 times)

itsmyluck · **on:** Jun 30, 2018

Pure inflation occurs when

A) nominal wages rise faster than all prices.
B) all prices rise faster than nominal wages.
C) all prices and nominal wages rise by the same percentage.
D) the GDP deflator and Consumer Price Index rise by the same percentage.
E) none of the above

Question 2

Suppose we switch the base year from 2000 to 2008. This change in the base year will cause

A) nominal GDP in every year to increase.
B) nominal GDP in every year to decrease.
C) both nominal and real GDP in every year to decrease.
D) real GDP in every year to decrease.
E) none of the above