Suppose That the Real Wage Remained Unchanged Between Year 1

question 82

Multiple Choice

Suppose that the real wage remained unchanged between year 1 and 2 but the nominal wage increased from $20 to $24.What is true about the price level?

• A)It rose by 20 percent.
• B)It rose by 25 percent.
• C)It remained unchanged.
• D)It fell by 10 percent.
• E)It fell by 20 percent.

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Definitions:

Maternal Drug Use

The consumption of drugs by a mother during pregnancy, which can have significant health impacts on the fetus.

Spina Bifida

A birth defect that occurs when the spine and spinal cord don't form properly, leading to varying degrees of disability, which can include mobility issues, problems with bowel and bladder control, and hydrocephalus.

Anencephaly

A severe congenital condition characterized by the absence of a major portion of the brain, skull, and scalp, typically resulting in stillbirth or death shortly after birth.

Folic Acid

A B vitamin that is crucial for healthy cell growth and development, particularly important during pregnancy.