Suppose That the Nominal Wage, the Expected and Actual Price

question 45

Multiple Choice

Suppose that the nominal wage, the expected and actual price levels, and the expected and actual inflation rates for a hypothetical economy in 2016 are presented in the following table. What is the actual real wage rate in 2016?

• A)$29.73
• B)$29.41
• C)$28.57
• D)$28.12

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention before conditioning.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Primary Stimulus

The initial or main source of stimulation that elicits a response in sensory, behavioral, or cognitive processes.

Secondary Stimulus

A stimulus that acquires the capacity to evoke a conditioned response after being paired with a primary stimulus.