If a Worker Receives 6 Percent Higher Nominal Wages Over

question 30

Multiple Choice

If a worker receives 6 percent higher nominal wages over a year in which inflation is 2 percent,the worker's real wages have

• A)risen by 8 percent.
• B)risen by 4 percent.
• C)risen by 3 percent.
• D)fallen by 3 percent.
• E)fallen by 4 percent.

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Definitions:

Accounting Information System

A system that collects and processes transaction data and communicates financial information to decision-makers.

Management Function

Activities carried out by managers in an organization such as planning, organizing, leading, and controlling to achieve business objectives.

Constraining

The act of limiting or restricting some process or activity.

Management Function

This involves the processes and activities of planning, organizing, leading, and controlling an organization to achieve its objectives.