If Nominal Wages Rose 1

question 7

Multiple Choice

If nominal wages rose 1.5% and productivity increased 3% in a given year,we should expect:

• A)an increase in unit labor costs and upward pressure on prices
• B)an increase in unit labor costs and downward pressure on prices
• C)a decrease in unit labor costs and upward pressure on prices
• D)a decrease in unit labor costs and downward pressure on prices

---

Definitions:

Privileged Backgrounds

Refers to individuals who come from socio-economically advantaged families, providing them with opportunities and advantages that are not available to everyone.

Southern

Pertaining to or characteristic of the South, a region in the United States known for its distinct cultural, historical, and social traits.

Greensboro Sit-in

A civil rights protest in 1960 where African American students sat at a segregated Woolworth's lunch counter in Greensboro, North Carolina, demanding service.

Arms Race

A competition between nations for superiority in the development and accumulation of weapons, especially between the United States and the Soviet Union during the Cold War.