Lorrie Will Receive a Nominal Wage Increase of 10 Percent

question 105

Multiple Choice

Lorrie will receive a nominal wage increase of 10 percent this year.The inflation rate was 5 percent last year and is predicted to be 8 percent this year.If the economic forecast is correct,her real wage this year

• A) will increase by approximately 2 percent
• B) will increase by approximately 8 percent
• C) will increase by approximately 5 percent
• D) will remain the same
• E) cannot be calculated without knowing the number of dollars by which her wage increases

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