Assume That Your Nominal Wage Was Fixed at $15 an Hour

question 82

Multiple Choice

Assume that your nominal wage was fixed at $15 an hour, and the price index rose from 100 to 105. In this case, your real wage has

• A) decreased to $10.
• B) increased to $15.75.
• C) decreased to $14.29.
• D) increased to $20.

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Definitions:

Accumulated Other Comprehensive Income

The cumulative effects of other comprehensive income items reported separately in the Stockholders’ Equity section of the balance sheet.

Long-Term Investments

Assets intended to be held for more than one fiscal year, including bonds, stocks, or real estate, aiming for future returns.

Reduce Expenses

A financial strategy aimed at decreasing costs to increase profitability.

Stabilize Supply

Actions or strategies implemented to ensure a consistent and reliable supply of goods, preventing shortages or excessive inventory.