Multiple Choice
Suppose that the real wage remained unchanged between year 1 and 2 but the nominal wage was $20 in year 1 and $18 in year 2.How was the price level affected?
A) It rose by 20 percent.
B) It rose by 25 percent.
C) It fell by 10 percent.
D) It fell by 20 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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