If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.
A)fallen; fallen
B)fallen; risen
C)risen; risen
D)risen; fallen

Question

Quizplus · Accepted Answer

If nominal wage rises more slowly than the price level, it means the real wage (purchasing power of the nominal wage) has fallen. Additionally, the purchasing power of a dollar has also fallen, as it can buy fewer goods and services due to the increasing price level.

If Your Nominal Wage Rises More Slowly Than the Price