Recently a Labour Union Argued That the Standard of Living

Multiple Choice

Recently a labour union argued that the standard of living of its members was falling.A critic of the union argued that this could not possibly be true because the union had been acquiring significant increases in the nominal incomes of its members through collective bargaining.Is the critic correct?

A) Yes, because when you have a large nominal income your standard of living automatically increases.
B) No, because real income may fall if price increases are more proportionately than the increase in nominal income.
C) No, because real income may fall if price increases are less proportionately than the increases in nominal income.
D) Yes, because real income may fall if price increases are less proportionately than the increases in nominal income.