A large manufacturing company agrees to a 5% nominal wage increase for its entire workforce. To cover these new, higher labor costs, the company's management immediately decides to raise the prices of its products by 5%. Which statement best analyzes the combined effect of these actions?
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A large manufacturing company agrees to a 5% nominal wage increase for its entire workforce. To cover these new, higher labor costs, the company's management immediately decides to raise the prices of its products by 5%. Which statement best analyzes the combined effect of these actions?
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