If workers received a 5 percent wage increase and the rate of inflation was 3 percent, then their real wage:
A)increased.
B)decreased.
C)remained constant.
D)equaled the nominal wage.

Name: If workers received a 5 percent wage increase and the rate of inflation was 3 percent, then their real wage: A)increased. B)decreased. C)remained constant. D)equaled the nominal wage.
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Quizplus · Accepted Answer

In this case, nominal wages rose faster than the inflation rate, so real wages increased.

If Workers Received a 5 Percent Wage Increase and the Rate