If Nominal Wage Rates Increase by 2 Percent Per Year

question 101

Multiple Choice

If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year,real wages will:

• A)increase by 3 percent per year.
• B)increase by 5 percent per year.
• C)increase by 2 percent per year.
• D)decrease by 5 percent per year.
• E)decrease by 3 percent per year.

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Definitions:

Non-English-Speaking Background

Pertaining to individuals or communities for whom English is not the primary language, influencing their engagement with predominantly English-speaking societies.

High School

An educational institution that provides secondary education, typically serving students between the ages of 14 and 18 in many countries.

Rural Area

Geographic areas that are located outside towns and cities, characterized by sparse population density and primarily agricultural land use or natural settings.

Institutional Racism

Forms of racism that are embedded as normal practice within society or an organization, leading to discrimination in criminal justice, employment, housing, health care, political power, and education, among others.