Suppose the real wage of a worker remains unchanged between Year ...

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Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from 20 in Year 1 to 18 in Year 2 . This implies that the price level has:
 a. increased by 20 percent.
  b. increased by 25 percent.
  c. remained unchanged.
 d. fallen by 10 percent.
 e. fallen by 20 percent.

Question 2

The demand for money will be high in an economy experiencing:
 a. a depression.
 b. hyperinflation.
 c. deflation.
 d. a recession.
 e. a sluggish population growth.

[bob]

Answer to Question 1

d

Answer to Question 2

b

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Thanks for the timely response, appreciate it

[JaynaD87]

Great answer, keep it coming