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:

Rounded

The process of adjusting a number to its nearest value, often to a specified number of decimal places, for ease of reading or reporting.

Median

After organizing a dataset in ascending or descending sequence, the median is identified as the middle point.

Mean

A measure of central tendency representing the central or typical value in a dataset, calculated as the sum divided by the number of data points.

Rounding Rules

Guidelines for rounding numerical values, often to a specified number of decimal places, to simplify reporting or calculation.