If a Price Index Changed from 150 in 2008 to 148.5

question 104

Multiple Choice

If a price index changed from 150 in 2008 to 148.5 in 2009,while Jim Bob's nominal wage fell from $25 to $24,then Jim Bob is

• A)Better off like everyone else in the economy since prices are lower for consumers.
• B)Neither better nor worse off since his real wage remained constant.
• C)Better off since his nominal wage fell slower than the price level did.
• D)Worse off since his nominal wage fell faster than the price level diD.Jim Bob experienced a 4 percent decline in his nominal wage while prices fell on average by 1 percent,causing his real wage to be lower.

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Definitions:

Middle-aged

The period of life typically ranging from about 45 to 65 years old, marked by transitions in health, social identity, and often career or family roles.

Family Care

Support and maintenance provided to family members, especially those who are elderly, ill, or disabled, by relatives.

Siblings

Brothers or sisters who share one or both parents in common.

Primary Caregiver

An individual, often a parent or family member, who takes the main responsibility for providing care and meeting the daily needs of a child or dependent adult.