Which of the Following Statements Is True About Real Wages

question 169

Multiple Choice

Which of the following statements is true about real wages?

• A)Real wages increase as long as nominal wages decrease.
• B)Real wages increase as long as nominal wages increase.
• C)If prices rise faster than nominal wages, real wages will increase.
• D)If prices rise faster than nominal wages, real wages will decrease.
• E)Real wages increase as long as inflation increases.

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Definitions:

Reasonably Proportionate

A criterion for determining whether a particular measure or action is fair and appropriate in its scope relative to its intended outcome or objective.

Gap Filler

refers to provisions or measures in a contract that deal with situations where the parties have omitted details.

Physical Delivery

The actual delivery of a tangible asset or commodity from the seller to the buyer, as opposed to a delivery through transfer of ownership documents or digital records.

Merchant

A business or individual engaged in commercial trade or sales.