Identify the Correct Statement

Multiple Choice

Identify the correct statement.

A) In periods of low inflation,real wages are constant but nominal wages decline.
B) If the price level increases,real wages will increase.
C) If the price level increases,nominal wages will fall.
D) In periods of high inflation,real wages change even if nominal wages remain constant.
E) If the inflation rate is high,real wages and nominal wages change by the same amount.