A nominal wage is:
A)always equal to the legal minimum wage.
B)the same as the efficiency wage.
C)measured in terms of the amount of goods and services it can purchase.
D)measured in current dollars rather than in constant dollars.
E)measured in constant dollars rather than in current dollars.

Question

Quizplus · Accepted Answer

Nominal wage is measured in current dollars rather than in constant dollars. It refers to the wage rate that is actually paid to the worker in terms of current dollars. In contrast, real wage is measured in constant dollars and reflects the purchasing power of the nominal wage.

A Nominal Wage Is