1. In what aspects do the inflation rate and the growth rate of RGDP differ? 

2. Do they have anything in common? 

3. Explain the consequences of an inflation rate of 2–3%, and a real GDP growth rate of 2–3% for an economy like the U.S.

4.Would your answer differ if the inflation and RGDP growth rates were both around 10%? Explain. 

5. As shown in this graph  : between 1981 and 2011, the nominal wage rate in the U.S. more than doubled, but the real wage rate stayed roughly constant because the increase in the nominal wage rate just kept up with inflation. How can this fact contribute to explaining the mortgage crises

Wage rate (dollars per hour) 24 20 16 12 8 1980 1985 1990 1995 Nominal wage rate Real wage rate 1980 dollars. 2000 2005 2010 2015 Year