Suppose You Received a 5 Percent Increase in Your Nominal

question 16

Multiple Choice

Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true ?

• A) Your real wage increased.
• B) Your nominal wage decreased.
• C) Both your nominal and real wages decreased.
• D) Although your nominal wage rose, your real wage decreased.

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Definitions:

Sociability

The tendency to seek social interactions and be influenced by or interested in engaging with society and its members.

Strange Situation

A procedure developed in psychology to observe attachment relationships between a caregiver and child.

Mary Ainsworth

A developmental psychologist best known for her work on attachment theory, including the Strange Situation Procedure to assess infant attachment styles.

Self-fulfilling Prophecy

A belief or expectation that influences one's behavior in a way that causes the belief to become true.