Multiple Choice
In which of the following situations would an individual experience an increase in real wages?
A) Receiving a 5 percent increase in nominal wages while inflation was 6 percent
B) Taking a 3 percent cut in nominal wages while deflation was 4 percent
C) Taking a 1 percent cut in nominal wages while inflation was 1 percent
D) Receiving a 3 percent increase in nominal wages while inflation was 3 percent
E) Receiving no increase in nominal wages while inflation was 0 percent
Correct Answer:

Verified
Correct Answer:
Verified
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