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Question
Observe the relationship of the first pair of words and complete the second pair.
During inflation, Producers gain; During inflation, ______ lose.
Options
Wage earners
Farmers
Debtors
Traders
MCQ
Fill in the Blanks
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Solution
During inflation, Producers gain; During inflation, Wage earners lose.
Explanation:
Wage earners’ income is fixed and does not rise at the same rate as rising market prices. This mismatch between growing prices and stagnating income significantly diminishes their real purchasing power, causing individuals to lose money during inflationary periods.
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