If Nominal Wage Rates Increase by 2 Percent Per Year

question 101

Multiple Choice

If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year,real wages will:

• A)increase by 3 percent per year.
• B)increase by 5 percent per year.
• C)increase by 2 percent per year.
• D)decrease by 5 percent per year.
• E)decrease by 3 percent per year.

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Definitions:

Collectivism-group

A sociopolitical system that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

Cohesiveness

The degree to which members of a group or team are united in pursuing their common goals and how much they are attracted to the group or team.

GLOBE Model

A research framework used for understanding the relationship between culture and societal, organizational, and leadership effectiveness across the world.

Collectivism-societal

An orientation valuing the goals, well-being, and views of the group over those of the individual, prevalent in various cultures and societies.