Based on the example in the video, given the raise you received you would be worse off if inflation is

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22-07-2022
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Based on the example in the video, given the raise you received you would be worse off if inflation is

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Tundexi Tundexi · Answer 1 · 2022-07-29T21:26:51+02:00

Based on the received pay raise, one would be worse off if the inflation is increasing without consideration to increase the pay raise as well.

What is an inflation?

This refers to the rate of increase in prices over a given period of time and also known as the overall increase in prices or the increase in the cost of living in a country.

Usually, when we are evaluating a raise, we must account for the rate of inflation over the course of a year because if the inflation rate is greater than the percentage raise in the wage, then, one is worse off because the real income will fall.

Hence, based on the received pay raise, one would be worse off if the inflation is increasing without consideration to increase the pay raise as well.