Assume you received a four percent increase in your salary

Reference no: EM1329245

Nominal Wage and Inflation

Suppose you received a 4% increase in your nominal wage. Over the year, inflation runs about 7%. Which of the following statements is true?

- Your real wage increased.
- Both the nominal and real wages increased.
- Both your nominal and real wages decreased.
- Although your nominal wage fell, your real wage increased.
- Although your nominal wage rose, your real wage decreased.

Reference no: EM1329245

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