If the nominal wage rises by 6 percent,and the price level falls by 2 percent,the real wage will:

A) be unaffected.
B) rise by 4 percent.
C) fall by 4 percent.
D) rise by 8 percent.

Nominal Wage

The amount of money paid to an employee without adjustment for inflation or deflation, often referred to as the dollar wage.

Price Level

The mean of present costs for all types of products and services generated within the economy.

Real Wage

Refers to the purchasing power of wages, taking into account the effects of inflation and deflation on the value of money.