If my nominal wages go up 5% this year and inflation is 2% this year, what happened? a) All of the choices are correct. b) I experience an increase in my both my nominal income and in my real income. c) My nominal wages increased more than the increase in the overall price level. d) My real wages increased by approximately 3%
If my nominal wages go up 5% this year and inflation is 2% this year, what happened? a) All of the choices are correct. b) I experience an increase in my both my nominal income and in my real income. c) My nominal wages increased more than the increase in the overall price level. d) My real wages increased by approximately 3%
Chapter13: Inflation
Section: Chapter Questions
Problem 10SQ
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If my nominal wages go up 5% this year and inflation is 2% this year, what happened?
a) All of the choices are correct.
b) I experience an increase in my both my nominal income and in my real income.
c) My nominal wages increased more than the increase in the overall price level.
d) My real wages increased by approximately 3%
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