If Your Nominal Wage Rises More Slowly Than the Price

question 265

Multiple Choice

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

• A)fallen; fallen
• B)fallen; risen
• C)risen; risen
• D)risen; fallen

---

Definitions:

Public Policy

A system of laws, regulatory measures, courses of action, and funding priorities concerning societal issues, established by governmental entities.

Ethics

A branch of philosophy dealing with what is morally right or wrong.

Philosophy

The study of fundamental questions regarding existence, reason, knowledge, values, mind, and language.

Cultural Relativist

A view that moral or ethical systems, which vary from culture to culture, are all equally valid and no one system is really "better" than any other.