Suppose there is a 5 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 2 percent. Which of the following is true in this case?
a. Real wage would fall by about 10 percent
b. Real wage would increase by about 20 percent.
c. Real wage would fall by about 25 percent.
d. Real wage would increase by about 50 percent.
e. Real wage would increase by about 3 percent.
e
Economics
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What is it called when a third party is facilitating negotiations?
a. concession b. grievance c. arbitration d. mediation
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If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience
a. unemployment. b. recession. c. stagflation. d. inflation. e. budget surpluses.
Economics