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Suppose Paris Thinks a 5 Percent Increase in Her Hourly

Question 21

Multiple Choice

Suppose Paris thinks a 5 percent increase in her hourly wage as an incentive to work more hours while the price level also increases by 5 percent. Paris is said to be suffering from


A) money illusion.
B) rationality.
C) irrationality.
D) the effects of competition.

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