Recently a Labour Union Argued That the Standard of Living

Multiple Choice

Recently a labour union argued that the standard of living of its members was falling.A critic of the union argued that this could not possibly be true,because the union had been acquiring increases in the nominal incomes of its members through collective bargaining.Is the critic correct?

A) Yes, because when you have an increase in nominal income, your standard of living automatically increases.
B) No, because real income may fall if price increases are proportionally greater than the increases in nominal income.
C) No, because real income may fall if price increases are proportionally less than the increases in nominal income.
D) Yes, because real income may fall if price increases are proportionally less than the increases in nominal income.
E) Yes, because real income may fall if price increases are proportionally greater than the increases in nominal income.