If the Nominal Wages of Carpenters Rose by 1 Percent

question 84

Multiple Choice

If the nominal wages of carpenters rose by 1 percent in 2019 and the price level increased by 4 percent, then the real wages of carpenters

• A)decreased by 4 percent.
• B)decreased by 3 percent.
• C)increased by 3 percent.
• D)increased by 5 percent.

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Definitions:

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB).

Expenses

Costs incurred during a period by a business or individual in the process of earning revenue.

Function

The specific role or activity for which something is used or responsible within a system, organism, or machine.

Gross Profit Margin

Gross profit margin is a financial metric expressed as a percentage that measures the financial health of a company by indicating the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).