Asked by
Brenda Reynolds
on Nov 26, 2024Verified
Other things constant, which of the following is inversely related to inflation?
A) nominal wage only
B) real wage only
C) average price level in the economy
D) both nominal wage and real wage
Inflation
The tempo at which the aggregate cost of goods and services ascends, depleting the power of purchase.
Nominal Wage
Nominal Wage refers to the amount of money paid to workers in current dollars, without adjusting for inflation or purchasing power.
Real Wage
The purchasing power of an individual's earnings, considering inflation, reflecting the actual goods and services that wages can buy.
- Determine the impact of price level adjustments on real wage values.
Verified Answer
HH
Learning Objectives
- Determine the impact of price level adjustments on real wage values.