The long-run trend of real wages
A) cannot be determined from available data on nominal wages and the price level.
B) has been downward because the price level has risen faster than nominal wages.
C) has been upward.
D) has been downward because labor's share of the domestic income has fallen.

Question

Quizplus · Accepted Answer

Despite short-term fluctuations, the long-run trend of real wages has been upward due to economic growth, increases in labor productivity, and advances in technology. This means that workers can afford to buy more goods and services with their earnings which leads to an overall increase in prosperity for a society.

The Long-Run Trend of Real Wages