The real wage is equal to the:
A)wage measured in terms of the quantity of goods and services it buys.
B)wage measured in terms of the dollar value of the goods and services it buys.
C)nominal wage net of taxes paid on wages.
D)non-wage benefits received by workers.
E)product of the nominal wage and the price level.

Question

Quizplus · Accepted Answer

The real wage is the wage measured in terms of the quantity of goods and services it can buy. It reflects the purchasing power of the wage, which is affected not only by the nominal wage but also by the price level of goods and services.

The Real Wage Is Equal to The