Suppose the price level rises,but the number of dollars you are paid per hour stays the same.This means that your
A)nominal wage is higher.
B)nominal wage is lower.
C)real wage is higher.
D)real wage is lower.

Question

Quizplus · Accepted Answer

A rise in price level means that the cost of goods and services has increased. In this scenario, if the number of dollars paid per hour stays the same, the purchasing power of your wage decreases. This implies that your real wage has decreased. Therefore, option D, real wage is lower, is the correct choice.

Suppose the Price Level Rises,but the Number of Dollars You