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:

Major Shareholder

An individual or entity that owns a significant percentage of a company's shares, exerting influence or control over its management.

Vicariously Liable

Legal principle where one party is held responsible for the actions or omissions of another party.

Joint

Pertaining to rights, obligations, or ownership shared between two or more parties.

Unlimited Liability

A legal structure where the owners of a business are personally responsible for all of the debts and obligations of the business, without any limit.