Assume That Initially Your Nominal Wage Was $16 an Hour

question 109

Multiple Choice

Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your:

• A) Real wage has increased to $21
• B) Real wage has decreased to $15.24
• C) Nominal wage has increased to $21
• D) Nominal wage has decreased to $15.24

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Definitions:

Real Property

Land and any structures or improvements attached to the land, such as buildings, making it immovable property.

Tangible Property

Physical assets that can be touched and seen, such as buildings, machinery, and inventory.

Engagement Ring

A ring typically given as a symbol of commitment when proposing marriage.

Conditional

A status that depends on certain requirements being met or conditions being fulfilled.