If nominal wage rates increase by 5 percent per year and the price level increases by 3 percent per year, which of the following is correct?

a. Real wages will increase by 2 percent per year.
b. Real wages will increase by 3 percent per year.
c. Real wages will decrease by 3 percent per year.
d. Real wages will decrease by 2 percent per year.
e. Real wages will remain constant.

a