Why A is wrong and E is right
Started by
DianaK
· started 2024-02-07 20:57
· last activity 2024-02-08 03:51
· 2 replies
I'm just confused on why E would be the right answer, considering salaries are also increasing during inflation. If salaries are increasing, wouldnt consumers still soend more if their salaries are increasing as well?
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DianaK
· 2024-02-07 20:58
More specifically, it says "salaries are not keeping up with the pace" but it says in the stimulus that they are increasing
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Emil-Kunkin
· 2024-02-08 03:51
If salaries are not keeping pace with inflation then people are earning less in real terms. If prices rose ten percent but my salary only rises 5 percent, I won't be able to afford as much as I did the prior year.
This would explain why people don't make large purchases; they simply are unable to afford it anymore.
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