Suppose that the real wage remained unchanged between year 1 and 2 but the nominal wage increased from $20 to $24.What is true about the price level?
A) It rose by 20 percent.
B) It rose by 25 percent.
C) It remained unchanged.
D) It fell by 10 percent.
E) It fell by 20 percent.
Correct Answer:
Verified
Q2: Potential output is the amount produced when
A)firms'
Q3: The real wage represents the
A)quantity of goods
Q4: At the potential level of output,there is
Q5: If the price level rises by 5
Q6: Compensation is usually negotiated in terms of
Q10: Suppose that the real wage remained unchanged
Q11: Which of the following is true about
Q12: The nominal wage represents
A)the quantity of goods
Q112: The potential output of an economy is
Q127: At the potential level of output,there is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents