A year over year ________ in the buying power of money means that ...

[Yi-Chen]

A year over year ________ in the buying power of money means that definitely ________ from one year to the next.
 
  A) decrease; the price level increased
  B) increase; inflation increased
  C) decrease; inflation increased
  D) increase; the price level increased
  E) Both answers A and C are correct.

Question 2

The figure above shows the U.S. supply of labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
 
  A) rightward shift of the supply of labor curve.
  B) movement downward along the supply of labor curve from a point such as A to a point such as B.
  C) leftward shift of the supply of labor curve.
  D) movement upward along the supply of labor curve from a point such as C to a point such as B.
  E) None of the above answers is correct because there is no change in the supply of labor curve.

[meryzewe]

Answer to Question 1

A

Answer to Question 2

E

[Yi-Chen]

Gracias!

[nanny]

Thanks for the timely response, appreciate it