If the Inflation Rate Is 2 Percent and Nominal Wages

question 19

Multiple Choice

If the inflation rate is 2 percent and nominal wages increase by 1 percent,what happens to real wages?

• A) They rise by 1 percent.
• B) They fall by 1 percent.
• C) They remain constant.
• D) They fall by 2 percent.
• E) They rise by 3 percent.

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Definitions:

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Psychological Traits

Enduring characteristics of an individual's behavior, thought, and emotional patterns.

Gene Frequencies

The relative proportions of different alleles of a particular gene in a given population, important in the study of genetics and evolution.

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Events or occurrences that leave an impression on someone, contributing to their knowledge or understanding.