Suppose that the real wage remained the same from year 1 to 2, but the nominal wage increased from $20 to $24.How was the price level affected?
A) It rose by 25 percent.
B) It rose by 20 percent.
C) It fell by 20 percent.
D) It fell by 10 percent.
Correct Answer:
Verified
Q2: What is the key resource underlying aggregate
Q3: What is the term for wages in
Q4: What does potential output represent?
A) the amount
Q5: Suppose the price level rises by 5
Q6: Suppose the economy is at its potential
Q7: Which of the following characterizes the relationship
Q8: What does the real wage represent?
A) the
Q9: How is nominal wage measured?
A) in constant
Q10: What does the nominal wage represent?
A) the
Q11: Why is the expected price level significant?
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