1.4.3 In which if the following situations will you be best off, and in which will you be worst off, in terms of your real wage? Explain your answer.

a. You are offered a 5 percent wage increase and the inflation rate for the year turns out to be 7 percent.

b. You are offered a 1 percent wage increase and the inflation rate for the year turns out to be −2 percent.

c. You are offered a 12 percent wage increase and the inflation rate for the year turns out to be 16 percent.

d. You are offered a 6 percent wage increase and the inflation rate for the year turns out to be 6 percent.

e. You are offered a 7 percent wage increase and the inflation rate for the year turns out to be 3 percent.