Suppose the Real Wage Remains Unchanged Between Year 1 and Year

question 45

Multiple Choice

Suppose the real wage remains unchanged between Year 1 and Year 2 but the nominal wage increases from $20 to $24.Based on this information,we can conclude that the price level has:

• A)increased by 20 percent.
• B)increased by 25 percent.
• C)remained unchanged.
• D)decreased by 10 percent.
• E)decreased by 20 percent.

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