Refer to Figure 1.This would explain the difference between the nominal minimum wage and the real minimum wage.
A)Unemployment
B)Changes in the labor law
C)Inflation
D)The Fair Labor Standards Act

Question

Refer to Figure 1.This would explain the difference between the nominal minimum wage and the real minimum wage. 
A)Unemployment 
B)Changes in the labor law 
C)Inflation 
D)The Fair Labor Standards Act

Quizplus · Accepted Answer

Inflation causes the purchasing power of money to decline over time, which means that even though the nominal minimum wage may stay the same, its real value (adjusted for inflation) decreases.