Solved

The Nominal Annual Wage Increases from $20,000 to $21,000, While

Question 176

Multiple Choice

The nominal annual wage increases from $20,000 to $21,000, while the price level increases by 7 percent. In this case, the percentage change in the real annual wage is about


A) −1 percent.
B) −2 percent.
C) 3 percent.
D) 5 percent.

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