In a Particular Year,if the Price Level Rises by 4

question 126

Multiple Choice

In a particular year,if the price level rises by 4 percent and the nominal wage of workers rises by 6 percent,we can conclude that the real wage has:

• A)fallen by 2 percent.
• B)fallen by 10 percent.
• C)increased by 2 percent.
• D)increased by 10 percent.
• E)remained constant.

---

Definitions:

Intelligence

The ability to learn, understand, and apply knowledge to solve problems and adapt to new situations.

Problem Solving Skills

The ability to find solutions to obstacles or challenges in an effective and timely manner.

Visioning/Sensemaking

The process by which leaders articulate a compelling vision for the future and help others understand and make sense of their environment and challenges.

Creative Thinking

The process of thinking in novel and unconventional ways to generate new ideas or solve problems.