An example of a real variable is
A)the wage rate in rands.
B)None of these answers are real variables.
C)the price of corn.
D)the nominal interest rate.
E)the ratio of the value of wages to the price of fizzy drinks.

Question

Quizplus · Accepted Answer

A real variable is one that is adjusted for inflation, reflecting the actual purchasing power. The ratio of the value of wages to the price of fizzy drinks is a real variable because it compares two nominal values to show the real purchasing power of wages in terms of fizzy drinks.

An Example of a Real Variable Is