Multiple Choice
In Las Vegas,the cost of living index is 110,and in San Francisco,it is 170.You work in Las Vegas currently and your salary is $57,000.You are offered a promotion and pay raise of $70,000 to move to San Francisco.If you take the promotion
A) your nominal wage and your real wage have increased.
B) your nominal wage increased but your real wage has decreased.
C) your nominal wage decreased but your real wage has increased.
D) both your nominal and real wage have decreased.
E) your real wage remained constant even though your nominal wage rose.
Correct Answer:
Verified
Correct Answer:
Verified
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