Your Nominal Wage Increases by 10%,and the Overall Price Level

question 54

Multiple Choice

Your nominal wage increases by 10%,and the overall price level increases by 12%.Which statement is correct?

• A) If you feel richer, you are experiencing money illusion.
• B) You face a price confusion problem.
• C) You face a menu costs problem.
• D) You would be certain that your real wage had increased.
• E) Bureau of Labor Statistics factors would cause you to experience deflation.

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