You are offered two jobs,one in Chicago paying $67,000 and one in Philadelphia paying $79,000.The price index in Chicago is 110.8,and in Philadelphia it is 126.5.If real wages are the only consideration,then
A) you would be indifferent between the two jobs because the real wages would be about the same (within 2 percent) .
B) you would definitely take the job in Chicago because the real wage is higher there.
C) you would definitely take the job in Philadelphia because the real wage is higher there.
D) you would suffer from money illusion and be conflicted.
E) because there is a direct correlation between the real wage and the nominal wage,the job in Philadelphia is definitely the one to take.
Correct Answer:
Verified
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