Suppose There Is a 3 Percent Increase in the Nominal

question 107

Multiple Choice

Suppose there is a 3 percent increase in the nominal wages of workers in an economy.The annual rate of inflation in the economy is about 6 percent.Which of the following is true in this case?

• A)Real wages would fall by about 3 percent.
• B)Real wages would increase by about 20 percent.
• C)Real wages would fall by about 25 percent.
• D)Real wages would increase by about 50 percent.
• E)Real wages would increase by about 10 percent.

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Definitions:

Relative Cell References

In spreadsheet software, a cell reference that adjusts automatically when the formula containing it is moved to another cell.

Formula Location

The specific cell or range of cells in a spreadsheet where a mathematical calculation is performed.

Sequential Values

A series of numbers or items arranged in a specific, consecutive order.

Named Range

A feature in spreadsheet software that allows a user to assign a descriptive name to a cell or range of cells for easy reference.