(Table 1: Econia's Consumer Price Index and Salary Data, 2008 and 2018) Table 1 provides data on Econia's Consumer Price Index (CPI) and average salaries for two years. Junko says that Econia's workers are twice as prosperous as they were before, but Marko disagrees. Who is suffering from the money illusion and why?
A) Junko is suffering from the money illusion because she is considering only nominal values and not real values.
B) Junko is suffering from the money illusion because she should focus only on the CPI and not on salaries to make the determination.
C) Marko is suffering from the money illusion because he is focused only on the CPI and not on salaries.
D) Marko is suffering from the money illusion because he is considering real values rather than nominal values.
Correct Answer:
Verified
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