Question

Mr. Lee received a raise at a job this year, but he finds that he has less money to spend each month. What is the most likely reason for this situation?

a. The supply of goods and services has risen
b. Unemployment has dropped across the country
c. Mr. Lee is buying more expensive goods
d. Inflation was greater than Mr. Lee's raise

Answer 1

Actually a, c or d could all be direct reasons and b could indirectly affect them too. I'd suggest the answer they are looking for is d that inflation is greater than the raise though