If Prices (As Measured by the CPI)tripled and Nominal Wages

question 162

Multiple Choice

If prices (as measured by the CPI) tripled and nominal wages tripled,what would happen to real wages?

• A) They would triple.
• B) They would remain unchanged.
• C) They would increase by one-third.
• D) They would decrease by one-third.
• E) They would increase by a factor of nine.

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