Unanticipated inflation Unanticipated inflation penalises:       A.  those earning incomes that are taxed in nominal terms     B.  those who hold cash     C.  those who lend money at a fixed interest rate     D.  those earning incomes that are taxed in nominal terms, those who hold cash and those who lend money at a fixed interest rate

Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A department store clerk, a  heavily indebted farmer A private pensioner The government

The table below shows the annual change in the average nominal wage and inflation rate since 2008. a. Compute the percentage change in real income for each year shown in the table. Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign. Percentage Changes in Nominal Income and Prices Year 2008 2009 2010 2011 2012 2013 Annual Inflation Rate (percent) 3.92% -0.36 1.66 3.24 2.11 1.48 Annual Nominal Wage Growth (percent) 0.34% -1.24 -0.76 1.4 2.76 2.28 Annual Real Wage Growth (percent) (0.39) x % (0.88) ♥ 2.42 x 9.87 x b. Of the years listed above, the paycheck of the average worker declined in 2 c. Of the years listed above, the purchasing power of the average worker declined in of the six years. 4 of the six years. d. The average real income of households can increase whether the nominal wage increases or decreases

The relationship between the inflation rate and the unemplotment rate is it a micro or macro decison? explain why