When a worker's nominal wage is indexed, the nominal wage is usually automatically adjusted based on movements in which of the following variables?

Question

Quizplus · Accepted Answer

When a worker's nominal wage is indexed, it is usually automatically adjusted based on movements in the price level, as this reflects changes in the general level of prices in the economy. This helps to ensure that the purchasing power of the worker's wage remains relatively constant over time, even as prices increase.

When a Worker's Nominal Wage Is Indexed, the Nominal Wage