Suppose the Nominal Wages of Workers in an Economy Increase

question 126

Multiple Choice

Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent.The real wages:

• A)would increase by about 2 percent.
• B)would decrease by about 5 percent.
• C)would increase by about 50 percent.
• D)would increase by about 10 percent.
• E)would decrease by about 25 percent.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed in early childhood.

Sensorimotor Stage

The first of the four stages of cognitive development in Piaget's theory, where infants learn about the world through their sensory experiences and manipulating objects.

Jean Piaget

A Swiss psychologist known for his pioneering work in developmental psychology and his theory of cognitive development in children.

Telegraphic Speech

A stage in language acquisition during which a child uses short, simple constructions, often lacking articles and auxiliary verbs.