Multiple Choice
If the inflation rate is 3 percent and the nominal wage is frozen for one year,by how much will the real wage change?
A) It will decrease by about 3 percent.
B) It will not change.
C) It will increase by 3 percent.
D) It will triple.
E) We do not have enough information to determine this answer.
Correct Answer:
Verified
Correct Answer:
Verified
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