Lorrie Will Receive a Nominal Wage Increase of 10 Percent

Multiple Choice

Lorrie will receive a nominal wage increase of 10 percent this year.The inflation rate was 5 percent last year and is predicted to be 8 percent this year.If the economic forecast is correct,her real wage this year

A) will increase by approximately 2 percent
B) will increase by approximately 8 percent
C) will increase by approximately 5 percent
D) will remain the same
E) cannot be calculated without knowing the number of dollars by which her wage increases