In an inflationary period which of the following statements is NOT true?

a

Wages rise simultaneously with prices

b

The purchasing power of money diminishes

c

More money runs after a limited quantity of goods

d

Money supply increases

e

Aggregate real demand exceeds aggregate real supply

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Discussions (4)

Titilayo3491
9 years ago

can someone explain this pls

colikstan
3 years ago

Please A is wage-price spiral
B is the answer. Increase in price level or lower purchasing power of goods

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