If Inflation Equals Zero, Then a Worker's Real Wage Will

question 39

Multiple Choice

If inflation equals zero, then a worker's real wage will fall when:

• A) the nominal wage increases by less than 1% per year.
• B) the nominal wage decreases.
• C) the nominal wage is constant.
• D) relative prices increase.

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Definitions:

Procrastination

The act of delaying or postponing tasks, often leading to stress, anxiety, or reduced performance.

Physiological State

The condition of the body's normal functions and processes, which can be influenced by factors like health, exercise, and stress.

Skin Resistance

A measure of the skin's ability to resist electrical current, often used in psychophysiological research to gauge emotional or stress responses.

Benson's Relaxation

A technique developed by Herbert Benson to reduce stress and promote relaxation through deep breathing, meditation, and repetitive prayer.