If inflation is 6 percent and a worker receives a 4 percent nominal wage increase, then the worker's real wage:

Question

BlackTom AI · Accepted Answer

Consider the relationship between nominal wage growth and inflation when evaluating real wages.
Option a: 'increased 4 percent.' If wages rose by 4% and inflation were 0%, real wages would rise by 4%. Here inflation is 6%, so a 4% nominal increase does not translate to a real gain of 4%; this option ignores the eroding effect of inflation.
Option b: 'increased 2 percent.' A rise of 2% in nominal wages, with 6% inflation, would yield a real wage change of 2% − 6% = −4%. This would imply a larger drop in real wages than indicated here, so this option miscalculates the impact by not aligning with the 4% wage increase.
Option c: 'decreased 2 percent.' The real wage change equals nominal wage growth minus inflation: 4% − 6% = −2%. A negative 2% real wage means purchasing power fell despite a higher nominal wage, which matches this option.
Option d: 'decreased 6 percent.' This would imply a real wage change of 4% − 6% − 0% or misapplying the formula; it incorrectly treats the outcome as a full 6% decrease rather than the correct 2 percentage-point gap between inflation and wage growth.
In summary, the key idea is real wages reflect the difference between what workers earn nominally and how much prices have risen; since prices rose by 6% and wages rose by 4%, real wages fell by 2%. The only option that expresses a −2% real change is option c, while the others misstate the relationship or arithmetic involved.

If inflation is 6 percent and a worker receives a 4 percent nominal wage increase, then the worker's real wage:单项选择题

类似问题

If the nominal wage is $30 in 2011 and the CPI is 202 in 2011, then the real wage in 1982-1984 dollars

Which ONE of the following thalamic nuclei is targeted by the trigeminothalamic tract?

Which ONE of the following is disinhibited in the direct pathway of the basal ganglia motor loop

30. What is the main purpose of the lecture?

Section FChoose a, b or c as the best answer.29. Which statement is the speaker most likely to agree with?

28. 15-minute neighbourhoods provide residents with inexpensive ____ .

27. ____ % of global car ownership is in the U.S.A.

26. ____ % of American drivers use their cars for all journeys.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单