If the Price Level Rises by 4 Percent and the Nominal

question 83

Multiple Choice

If the price level rises by 4 percent and the nominal wage rises 6 percent,the real wage

• A)falls by 2 percent
• B)falls by 10 percent
• C)rises by 2 percent
• D)rises by 10 percent
• E)remains constant

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Definitions:

Union Economy

During the American Civil War, the Union economy refers to the economic conditions and policies in the Northern states, which supported industrial growth and the war effort against the Confederacy.

Protective Tariff

A tax imposed on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Free Trade

A trade policy that minimizes restrictions on imports and exports between countries, promoting global economic integration.

Sea Islands Experiment

The 1861 pre-Reconstruction social experiment that involved converting slave plantations into places where former slaves could work for wages or own land. Former slaves also received education and access to improved shelter and food.