If Your Nominal Wage Rises Faster Than the Price Level,we

question 264

Multiple Choice

If your nominal wage rises faster than the price level,we can say your real wage has ________ and the purchasing power of your income has ________.

• A)fallen; fallen
• B)fallen; risen
• C)risen; risen
• D)risen; fallen

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Definitions:

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A German-born American diplomat and political scientist who served as Secretary of State and National Security Advisor under the presidential administrations of Richard Nixon and Gerald Ford.

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A faculty member at Harvard University, typically involved in teaching and research activities.