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Suppose You Recently Took a Pay Cut of 2% at Your

Question 34

Multiple Choice

Suppose you recently took a pay cut of 2% at your job.You expect the price level to fall by 3% during this year.What would be the impact on your real wage?


A) The real wage would fall by 3%
B) The real wage would rise by 3%
C) The real wage would fall by 1%
D) The real wage would rise by 1%
E) The real wage would be unchanged

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