Recall Application 5, "The Declining Real Minimum Wage," to answer the following questions:
-According to the application, if the nominal minimum wage is unchanged while prices rise, then the real minimum wage:
A) rises.
B) declines.
C) is unaffected.
D) stays the same.

Question

Quizplus · Accepted Answer

If prices rise while the nominal minimum wage stays the same, the purchasing power of the wage decreases and the real minimum wage declines.

Recall Application 5, "The Declining Real Minimum Wage," to Answer