Suppose That the Real Wage Remained Unchanged Between Year 1

question 76

Multiple Choice

Suppose that the real wage remained unchanged between year 1 and 2 but the nominal wage was $20 in year 1 and $18 in year 2.How was the price level affected?  

• A) It rose by 20 percent. 
• B) It rose by 25 percent. 
• C) It fell by 10 percent. 
• D) It fell by 20 percent.

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Definitions:

Pride in Accomplishment

is a feeling of satisfaction and self-respect that comes from achieving or excelling in something.

Vacation

A period of time spent away from home or work for relaxation or recreation.

Ethical Goals

Objectives that align with moral principles, guiding organizations towards responsible and integrity-based decisions.

Decision Making

is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.