If the Price Level Rises by 5 Percent and the Nominal

question 194

Multiple Choice

If the price level rises by 5 percent and the nominal wage rises 3 percent,the real wage

• A)falls by 2 percent
• B)falls by 8 percent
• C)rises by 2 percent
• D)rises by 8 percent
• E)remains constant

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Definitions:

Coffee

A beverage made by grinding and brewing the seeds of the coffee plant, commonly consumed for its stimulating effects.

Tea

An aromatic beverage commonly prepared by pouring hot or boiling water over cured or fresh leaves of the Camellia sinensis plant.

Wage Rate

The amount of compensation or payment received by an employee per unit of time or piece of work completed.

Pizza Makers

Individuals or machines specifically tasked with preparing and cooking pizzas.