If a Price Index Changed from 150 in 2008 to 148.5

question 54

Multiple Choice

If a price index changed from 150 in 2008 to 148.5 in 2009,while Jim Bob's nominal wage fell from $25 to $24,then Jim Bob is

• A)Better off like everyone else in the economy since prices are lower for consumers.
• B)Neither better nor worse off since his real wage remained constant.
• C)Better off since his nominal wage fell slower than the price level did.
• D)Worse off since his nominal wage fell faster than the price level did.

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