Multiple Choice
If nominal wage rates increase by 5 percent per year and the price level increases by 3 percent per year,which of the following is correct?
A) real wages increase by 2 percent per year
B) real wages increase by 3 percent per year
C) real wages decrease by 3 percent per year
D) real wages decrease by 2 percent per year
E) real wages remain constant
Correct Answer:
Verified
Correct Answer:
Verified
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