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

Real wages have generally shown an upward trend over the long term, reflecting increases in productivity and economic growth that have outpaced inflation.

The Long-Run Trend of Real Wages