The Nominal Wage Is $40 an Hour and the Price

question 72

Multiple Choice

The nominal wage is $40 an hour and the price level as measured by a price index is 2.00.If the nominal wage falls to $30 and the price index declines to 1.50,according to the worker misperception explanation of the upward-sloping SRAS curve,workers will initially perceive the

• A) real wage as something greater than $20.
• B) real wage as something less than $20.
• C) real wage as $20.
• D) nominal wage as something more than $30.
• E) nominal wage as something less than $30.

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Definitions:

Ratio

A relationship between two numbers indicating how many times the first number contains the second or how the two numbers compare in size.

Median

The middle value in a set of data when it is ordered from least to greatest, or the point at which half the data values are above and half are below.

Median

The middle value in a set of ordered data, or the average of the two middle values when the set has an even number of observations.

Absolute Frequency

The count of occurrences or instances of a particular event or property in a dataset.