If Your Nominal Wage Rises but You Think That It

question 7

Multiple Choice

If your nominal wage rises but you think that it automatically means your real wage rose,then:

• A) you are suffering from money illusion.
• B) you are experiencing the substitution effect.
• C) you are suffering from the heterogeneity illusion effect.
• D) you are experiencing the income effect.
• E) you are suffering from the price confusion problem.