If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year,real wages will:
A) increase by 3 percent per year.
B) increase by 5 percent per year.
C) increase by 2 percent per year.
D) decrease by 5 percent per year.
E) decrease by 3 percent per year.
Correct Answer:
Verified
Q1: Identify the correct statement.
A)In periods of low
Q3: The potential output of an economy is:
A)the
Q4: When the economy is at its potential
Q5: Which of the following is true?
A)The nominal
Q6: A nominal wage is:
A)always equal to the
Q7: Suppose the price level increases by 5
Q8: Which of the following is true of
Q9: Suppose Jack's salary increased from $100,000 to
Q10: The real wage is equal to the:
A)wage
Q11: The nominal wage represents:
A)the wage measured in
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