If Prices Increase by 4 Percent and Wages Increase by 4

question 54

Multiple Choice

If prices increase by 4 percent and wages increase by 4 percent, the:

• A) real wage has increased.
• B) real wage has not changed.
• C) nominal wage has increased by 8 percent.
• D) nominal wage has not changed.

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Definitions:

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events.

Trembling

Involuntary shaking or quivering movements, often as a result of emotion, cold, or medical conditions.

Afraid

A feeling of fear or anxiety about a possible or probable situation or event.

Autonomic Failure

Autonomic Failure is a condition where the autonomic nervous system does not function properly, affecting bodily processes like blood pressure and heart rate.