If your wages are indexed so that they automatically adjust for ...

[ENagel]

If your wages are indexed so that they automatically adjust for inflation, in a period of continued high inflation, the cost of the goods and services you buy ____ and your nominal income ____.
 a. decreases, decreases
 b. increases, increases
 c. decreases, remains the same
  d. increases, remains the same

Question 2

Since the U.S. is organized as a market economy, the government sector does not play any role in economic activity.
 a. True
  b. False
  Indicate whether the statement is true or false

[sarah_brady415]

Answer to Question 1

b

Answer to Question 2

False