Suppose That the Real Wage Remained the Same from Year

question 95

Multiple Choice

Suppose that the real wage remained the same from year 1 to 2, but the nominal wage increased from $20 to $24.How was the price level affected?  

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

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Definitions:

Natural Athletic Ability

Innate physical talents and skills that enhance an individual's performance in sports and physical activities.

Sports Intelligence

The ability to understand and apply strategies, tactics, and skills effectively in sports and athletic contexts, often including quick decision-making and acute physical coordination.

Black Participants

Individuals of African descent who take part in research studies or experiments, often highlighted in studies focusing on racial or ethnic disparities.

Complexity-Extremity Effect

A psychological phenomenon where the complexity of a situation influences the extremity of individuals' judgments or perceptions.