Respuesta :
True, If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined.
What is Inflation?
In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation. Each unit of currency can purchase fewer products and services as the overall price level rises, hence inflation is characterized by a decline in the buying power of money.
How do rising prices impact salaries?
Investment decreases when inflation rises, and over time, the capital stock also decreases. Although consumption may also decrease, this has no immediate impact on the growth of capital. In addition to lowering GDP, diminishing capital stock also lowers worker productivity. Real wages, therefore, decrease as labor demand drops.
Therefore, If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined is a true statement.
For more information on Inflation and salaries, refer to the given link:
https://brainly.com/question/1622389
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