The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy.

Question

Quizplus · Accepted Answer

Real wages take into account the buying power of wages, so in reporting changes in real wages, the government uses measures such as the Consumer Price Index (CPI) to adjust for changes in the cost of living. This allows for a more accurate representation of the changes in the actual purchasing power of workers' wages over time.

The Government Uses the Buying Power of Wages Rather Than