An Assistant Professor of Economics Gets a $100-A-Month Raise, but Then

question 67

Multiple Choice

An assistant professor of economics gets a $100-a-month raise, but then she figures that with her current monthly salary she can't buy as many goods as she could last year. What has happened to her real and nominal wage?

• A) Her real and nominal wages have risen.
• B) Her real and nominal wages have fallen.
• C) Her real wage has risen, but her nominal wage has fallen.
• D) Her real wage has fallen, but her nominal wage has risen.

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