The Nominal Wage Is $40 an Hour and the Price

question 72

Multiple Choice

The nominal wage is $40 an hour and the price level as measured by a price index is 2.00.If the nominal wage falls to $30 and the price index declines to 1.50,according to the worker misperception explanation of the upward-sloping SRAS curve,workers will initially perceive the

• A) real wage as something greater than $20.
• B) real wage as something less than $20.
• C) real wage as $20.
• D) nominal wage as something more than $30.
• E) nominal wage as something less than $30.

---

Definitions:

Circadian Rhythm

The internal process that regulates the sleep-wake cycle and repeats on each rotation of the Earth roughly every 24 hours.

Day-Night Cycle

The 24-hour period that includes one full rotation of the Earth, leading to the natural alternation between daylight and nighttime.

Seasonal Affective Disorder

A type of depression that occurs at a certain time of the year, usually during winter when there is less natural sunlight.