QUESTI 10 points Save Answer If your paycheck rises from 200

QUESTI 10 points Save Answer If your paycheck rises from $2000 a month to $2100 month and inflation is at 5%, how has your real wage changed? real wage has risen real wage has fallen Ono impact on real wage not enough information

Solution

a) With an inflation of 5%, the real value of $2000 will be $2100 after a month. (the price will increase by 5% overall and the purchasing power will be the same.)

There will be \"no impact on the real wage\". The answer is \"C\".