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If the Overall Price Level in the Economy Increases by 10

Question 69

Multiple Choice

If the overall price level in the economy increases by 10% and the workers in the economy are able to afford the same amount of goods as before the price change, then which of the following statements is true?


A) The nominal wage of workers has decreased by 10%.
B) The real wage of workers has increased by 10%.
C) The nominal wage of workers has remained constant.
D) The real wage of workers has remained constant.

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