An increase in a person's nominal wage necessarily _____
A) means higher purchasing power.
B) means lower real wage.
C) means higher personal disposable income.
D) means higher nominal wage.
E) is not important until it is adjusted for inflation.

Question

Quizplus · Accepted Answer

An increase in a person's nominal wage does not necessarily mean higher purchasing power, lower real wage, higher personal disposable income, or higher nominal wage. It is not important until it is adjusted for inflation.

An Increase in a Person's Nominal Wage Necessarily _____