In a year, two changes occurred in a company. Company directors' salaries increased by $$\(15 \%\)$$. Office workers' wages increased by $$\(5 \%\)$$. The rate of inflation was $$\(3.4 \%\)$$. What happened to real income?

A.
B.
C.
D.
Economics
IGCSE&ALevel
CAIE
Exam No:0455_s21_qp_12 Year:2021 Question No:23

Answer:

D

Knowledge points:

4.8.4 consequences of inflation and deflation : consumers, workers, savers, lenders, firms and the economy as a whole.

Solution:

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