Deflation is occurring in a nation; the implication(s)of this is/are that
A) both real and nominal wages are rising.
B) both real and nominal wages are falling.
C) if you have no job and have no income,you are better off because things are cheaper.
D) holding nominal wages constant,the real wage would rise.
E) holding nominal wages constant,the real wage would fall.

Question

Quizplus · Accepted Answer

Deflation means a decrease in general price levels. If nominal wages remain constant, they will have a greater purchasing power as prices are falling. Therefore, the real wage, which is the purchasing power of a nominal wage, would increase.

Deflation Is Occurring in a Nation; the Implication(s)of This Is/are