The real wage rate is defined as the wage rate divided by
A)the interest rate.
B)the money supply.
C)nominal GDP.
D)the price level.

Question

Quizplus · Accepted Answer

The real wage rate is the nominal wage rate adjusted for changes in prices, so it is divided by the price level (usually measured using a price index such as the Consumer Price Index or GDP deflator). This gives us a measure of the purchasing power of wages, which is important for understanding the standard of living and economic well-being of workers.

The Real Wage Rate Is Defined as the Wage Rate