Multiple Choice
If the nominal wage rises from €10 per hour in period one to €15 per hour in period 2 as the expected price level rises from 1 to 3 while the actual price level rises from 4 to 5, then from period 1 to period 2:
A) the nominal wage is rising.
B) the expected real wage is falling.
C) the actual real wage is rising.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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