The Nominal Wage Is $40 an Hour and the Price

question 72

Multiple Choice

The nominal wage is $40 an hour and the price level as measured by a price index is 2.00.If the nominal wage falls to $30 and the price index declines to 1.50,according to the worker misperception explanation of the upward-sloping SRAS curve,workers will initially perceive the

• A) real wage as something greater than $20.
• B) real wage as something less than $20.
• C) real wage as $20.
• D) nominal wage as something more than $30.
• E) nominal wage as something less than $30.

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