If the nominal wage is $10 per hour and the expected price level is 2 and the actual price level is 4, then:
a. the expected real wage rate is greater than the actual real wage rate.
b. the expected real wage rate is greater than the actual nominal wage rate.
c. the expected real wage rate is less than the actual real wage rate.
d. the actual real wage rate is greater than the actual nominal wage rate.
Answer: a. the expected real wage rate is greater than the actual real wage rate.
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