Suppose You Received a 3 Percent Increase in Your Nominal

Multiple Choice

Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?

A) Your real wage fell.
B) Your nominal wage fell.
C) Both your nominal and real wages decreased.
D) Although your nominal wage fell, your real wage increased.
E) Both nominal and real wages increased.