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From year one to year two, assume that Carl's wage increases from \$10 to \$13 per hour. The price index increases from 100 to 110 between year one to year two. Which of the following is true?
Carl's nominal wage increased but his real wage decreased.
Carl's nominal wage increased by 30 percent and his real wage increased by nearly 20 percent.
There was a thirty percent inflation rate between the two years.
The real wage increased by a greater percentage amount than did the nominal wage.
There was deflation between years 1 and 2.