If Prices (As Measured by the CPI)fell by One-Half and Nominal

question 36

Multiple Choice

If prices (as measured by the CPI) fell by one-half and nominal wages fell by one-third,what would happen to real wages?

• A) They would fall by one-third
• B) They would remain unchanged
• C) They would decrease
• D) They would increase
• E) They would fall by one-half

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