If the nominal wage is €10 per hour and the expected price level is 5 and the actual price level is 4, then expected real wage rate is:
A)€10.
B)€2.50.
C)€2.
D)none of the above.

Name: If the nominal wage is €10 per hour and the expected price level is 5 and the actual price level is 4, then expected real wage rate is: A)€10. B)€2.50. C)€2. D)none of the above.
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Question

Quizplus · Accepted Answer

The expected real wage rate is calculated by dividing the nominal wage by the expected price level, so €10 / 5 = €2.

If the Nominal Wage Is €10 Per Hour and the Expected