Suppose Corrine received a 3 percent increase in her nominal wage.Over the year, inflation ran about 6 percent.Which of the following describes how Corrine's nominal and real wages were affected?

Question

Quizplus · Accepted Answer

Corrine's nominal wage increased due to the 3 percent raise, but her real wage decreased because the inflation rate of 6 percent outpaced her wage increase, reducing her purchasing power.

Suppose Corrine Received a 3 Percent Increase in Her Nominal