Multiple Choice
Suppose nominal wage rates increase by 5 percent per year and the price level increases by 3 percent per year.How will real wages be affected?
A) Real wages will increase by 2 percent per year.
B) Real wages will increase by 3 percent per year.
C) Real wages will decrease by 2 percent per year.
D) Real wages will decrease by 3 percent per year.
Correct Answer:
Verified
Correct Answer:
Verified
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