If you received a 4 percent increase in your nominal wage and the price level increased by 6 percent, then your real wage has increased by 2 percent.

Name: If you received a 4 percent increase in your nominal wage and the price level increased by 6 percent, then your real wage has increased by 2 percent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Your real wage has actually decreased because the price level increase (6 percent) is greater than the nominal wage increase (4 percent), reducing your purchasing power.

If You Received a 4 Percent Increase in Your Nominal