Assume That Your Nominal Wage Was Fixed at $12 an Hour

question 106

Multiple Choice

Assume that your nominal wage was fixed at $12 an hour, and the price index rose from 102 to 105. In this case, your real wage has

• A)decreased to $11.76.
• B)increased to $11.76.
• C)decreased to $11.43.
• D)increased to $11.43.

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Definitions:

Abuse

The improper treatment or misuse of something or someone, often causing harm or injury.

Autobiographical Memory

Memory of specific events in one’s life.

Script

General remembered outline of a familiar, repeated event, used to guide behavior.

Implicit

Implied or understood without being stated directly.