Question $38(1$ point$)$

If nominal wage rates increase by $5$ percent per year and the price level increases by $3$ percent per year, which of the following is correct? $($objective B$6)$

real wages increase by $2$ percent per year

real wages increase by $3$ percent per year

real wages decrease by $3$ percent per year

real wages decrease by $2$ percent per year

real wages remain constant