Suppose You Received a 3 Percent Increase in Your Nominal

question 92

Multiple Choice

Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?

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

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Definitions:

Word Of Mouth

An informal mode of communication among consumers sharing opinions and experiences about a product or service, often influencing purchasing decisions.

Communication Process

The method through which information is exchanged between senders and receivers, involving encoding, medium selection, decoding, and feedback.

Effective Communication

The process of delivering a message in a clear, concise, and understandable manner, ensuring it is received as intended.

Newspaper

A printed publication consisting of folded unstapled sheets and containing news, articles, advertisements, and other items of general interest.