If the Price Level Rises by 5 Percent and the Nominal

question 194

Multiple Choice

If the price level rises by 5 percent and the nominal wage rises 3 percent,the real wage

• A)falls by 2 percent
• B)falls by 8 percent
• C)rises by 2 percent
• D)rises by 8 percent
• E)remains constant

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Definitions:

Reflex

A rapid, automatic response to a stimulus, not requiring the involvement of consciousness, designed to protect the body or facilitate basic functions.

Insight Learning

"A form of problem solving in which the organism develops a sudden insight into or understanding of a problem’s solution."

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Organisms Learn

The process through which living beings acquire new information or behaviors through experiences.