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Last Year, You Earned a Nominal Wage of $10 Per

Question 147

Multiple Choice

Last year, you earned a nominal wage of $10 per hour and the price level was 120. This year your nominal wage is $11 per hour, but you are unable to purchase the same amount of goods as last year. The price level this year must be


A) 135.
B) 132.
C) 125.
D) 121.

Correct Answer:

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