Author Question: Suppose there is a 3 percent increase in the nominal wages of workers in an economy. The annual rate ... (Read 32 times)

karen · **on:** Jun 30, 2018

Suppose there is a 3 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 6 percent. Which of the following is true in this case?
a. Real wages would fall by about 3 percent.
b. Real wages would increase by about 20 percent.
c. Real wages would fall by about 25 percent.
d. Real wages would increase by about 50 percent.
e. Real wages would increase by about 10 percent.

Question 2

Medicaid is an example of a cash assistance poverty program.
a. True
b. False
Indicate whether the statement is true or false