If workers' nominal wages have risen by 50% over 10 years and prices have increased by 40% in that same period, then we can safely conclude that the amount of goods and services workers can buy has:

Question

Quizplus · Accepted Answer

If nominal wages have risen by 50% and prices have risen by 40%, then the purchasing power of those wages has still increased by 10% (50% - 40%). Therefore, workers can buy more goods and services than they could 10 years ago.

If Workers' Nominal Wages Have Risen by 50% Over 10