Suppose You Received a 5 Percent Increase in Your Nominal

question 13

Multiple Choice

Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true?

• A) Your real wage fell.
• B) Your nominal wage fell.
• C) Both your nominal and real wages decreased.
• D) Although your nominal wage fell, your real wage increased.
• E) Both your nominal and real wages increased.

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Definitions:

Personal Property

Tangible and intangible assets owned by an individual or business that are not permanently attached to or part of real estate.

Tangible

Objects or assets that have a physical form and can be touched, as opposed to intangible assets like intellectual property.

Bills of Lading

Official documents issued by a carrier to acknowledge receipt of cargo for shipment, detailing the terms of the carriage.

Negotiable

Capable of being bought, sold, or transferred to another party through endorsement or delivery.