Suppose You Received a 4 Percent Increase in Your Nominal

question 58

Multiple Choice

Suppose you received a 4 percent increase in your nominal wage.Over the year,inflation runs about 7 percent.Which of the following is true?

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

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Definitions:

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The statistical spread or pattern of grades received by students in a course or examination.

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The probability threshold below which the null hypothesis is rejected in a statistical test, indicating the results are statistically significant.

Chi-squared Goodness-of-fit Test

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Chi-squared Distribution

A statistical distribution describing the distribution of the sum of squared independent, standard normal variables, often used in hypothesis testing.