Suppose the real wage remains unchanged between Year 1 and Year 2 but the nominal wage increases from $20 to $24 . Based on this information, we can conclude that the price level has:
a. increased by 20 percent.
b. increased by 25 percent.
c. remained unchanged

d. decreased by 10 percent.
e. decreased by 20 percent.


a

Economics

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What will be an ideal response?

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Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).Recall the Application. An increase in the production of beer resulted in the demand for hops because hops are ________ to beer.

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