Multiple Choice
Your boss gives you an increase in the number of dollars you earn per hour,from $11 to $12.How does this change your nominal and real wages?
A) This increase in pay makes your nominal wage increase.If your nominal wage rose by a greater percentage than the price level,then your real wage also increased.
B) This increase in pay makes your nominal wage increase.If your nominal wage rose by a greater percentage than the price level,then your real wage decreased.
C) This increase in pay makes your real wage increase.If your real wage rose by a greater percentage than the price level,then your nominal wage also increased.
D) This increase in pay makes your real wage decrease.If your real wage rose by a greater percentage than the price level,then your nominal wage decreased.
Correct Answer:

Verified
Correct Answer:
Verified
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