The wage rate that is adjusted for changes in the price level over time is called the:
A) money wage rate.
B) nominal wage rate.
C) real wage rate.
D) expected future wage rate.

Question

Quizplus · Accepted Answer

The real wage rate takes into account inflation and adjusts the wage rate for changes in the price level over time. This means that the real wage rate reflects the purchasing power of a worker's wages, rather than just the nominal amount they receive. A) Money wage rate is simply the amount of money a worker receives for their labor, without taking inflation into account. B) Nominal wage rate is the wage rate expressed in current dollars, without adjusting for changes in the price level over time. D) Expected future wage rate refers to the expected wage rate a worker will receive in the future, without taking inflation into account.

The Wage Rate That Is Adjusted for Changes in the Price