1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they increase the price of their products. 2. When the actual inflation rate is lower than expected, lenders win and borrowers lose, because the real interest rate is greater than expected.
1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they increase the price of their products. 2. When the actual inflation rate is lower than expected, lenders win and borrowers lose, because the real interest rate is greater than expected.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: Money Growth And Intlation
Section: Chapter Questions
Problem 6PA
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