Deflation is occurring in a nation; the implication(s) of this is/are:
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 is a general decline in prices, meaning that the cost of living decreases, which can result in an increase in the purchasing power of money. Therefore, holding nominal wages constant, the real wage would rise, as workers can buy more goods and services with the same amount of money.

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