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The Nominal Annual Wage Increases from $25,000 to $27,000, While

Question 11

Multiple Choice

The nominal annual wage increases from $25,000 to $27,000, while the price level increases by 6 percent. In this case, the percentage change in the real annual wage is about


A) 8 percent.
B) 10 percent.
C) 14 percent.
D) 2 percent.

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