Which is the most likely result of incomes not rising as quickly as inflation?

Question

A.
People are able to buy fewer goods and services.

B.
The unemployment rate rises as more people look for jobs.

C.
Many people decide to leave the labor force.

D.
Consumers buy more goods before inflation raises prices more.

Answer 1

The most likely result of incomes not rising as quickly as inflation is that people are able to buy fewer goods and services. This is because the cost of goods and services will increase with inflation, making them more expensive and reducing their purchasing power. As a result, people may have to cut back on their spending or dip into their savings to maintain their desired standard of living.