If a price index changed from 150 in 2008 to 148.5 in 2009,while Jim Bob's nominal wage fell from $25 to $24,then Jim Bob is
A) Better off like everyone else in the economy since prices are lower for consumers.
B) Neither better nor worse off since his real wage remained constant.
C) Better off since his nominal wage fell slower than the price level did.
D) Worse off since his nominal wage fell faster than the price level diD.Jim Bob experienced a 4 percent decline in his nominal wage while prices fell on average by 1 percent,causing his real wage to be lower.
Correct Answer:
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