If the Price Level Rises by 4 Percent in a Year

question 35

Multiple Choice

If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will

• A)decrease by 6 percent.
• B)decrease by 4 percent.
• C)decrease by 2 percent.
• D)increase by 2 percent.

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Definitions:

Determinism

A philosophical doctrine stating that all occurrences, such as ethical decisions, are entirely caused by antecedent conditions.

Indeterminism

The philosophical theory that not all events are causally determined by preceding events or natural laws, leaving room for randomness or free will.

Soft Determinism

The philosophical viewpoint that reconciles the theory of determinism and the free will by arguing that behavior can be determined while still holding individuals morally responsible.

Counterarguments

Arguments presented to oppose or refute another argument, critical in enhancing the depth of debate or reasoning.