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Assume That Initially Your Nominal Wage Was $16 an Hour

Question 109

Multiple Choice

Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your:

A) Real wage has increased to $21
B) Real wage has decreased to $15.24
C) Nominal wage has increased to $21
D) Nominal wage has decreased to $15.24

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