Suppose the price level increases by 5 percent and the nominal ...

[Themember4]

Suppose the price level increases by 5 percent and the nominal wages of workers increase by 3 percent during a particular year. This implies that the real wage has:
 a. declined by 2 percent.
 b. declined by 8 percent.
 c. also increased by 2 percent.
  d. also increased by 8 percent.
  e. remained constant.

Question 2

The opportunity cost of holding money increases when:
 a. the interest rate rises.
 b. the interest rate falls.
 c. the price level falls.
 d. nominal GDP rises.
 e. nominal GDP falls.

[duy1981999]

Answer to Question 1

a

Answer to Question 2

a

[Themember4]

Thank you

[duy1981999]

No problemo