In Which of the Following Situations Would an Individual Experience

question 110

Multiple Choice

In which of the following situations would an individual experience an increase in real wages?

• A) Receiving a 5 percent increase in nominal wages while inflation was 6 percent
• B) Taking a 3 percent cut in nominal wages while deflation was 4 percent
• C) Taking a 1 percent cut in nominal wages while inflation was 1 percent
• D) Receiving a 3 percent increase in nominal wages while inflation was 3 percent
• E) Receiving no increase in nominal wages while inflation was 0 percent