If Nominal Wages Increase by 4 Percent While Real Wages

question 122

Multiple Choice

If nominal wages increase by 4 percent while real wages remain constant, the inflation rate must be

• A) -2 percent.
• B) 0 percent.
• C) 2 percent.
• D) 4 percent.

---

Definitions:

Head Injury

Trauma to the head, which can range from a mild bump or bruise to a serious brain injury.

Short-Term Memory Loss

A condition where a person has difficulties retaining recent information, often a precursor to long-term memory issues.

Sensory System

The part of the nervous system responsible for processing sensory information received from the environment, including sight, sound, touch, taste, and smell.

Mental Status

A state of a person's cognitive and emotional functioning which includes their consciousness, attention, orientation, memory, and mood.