If the nominal wage is $12 per hour and the price level (as measured by a price index)is 2,it follows that the real wage is _________ per hour.
A)$24.00
B)$6.00
C)$2.50
D)$14.00.
E)none of the above

Question

Quizplus · Accepted Answer

Real wage is calculated as the ratio of nominal wage to the price level. 
Real wage = nominal wage / price level 
= $12 / 2 
= $6.00

Therefore, option B is the correct answer.

If the Nominal Wage Is $12 Per Hour and the Price