Which of the following is correct?
A)The nominal wage may fall, but the real wage can never decline.
B)The real wage may fall, but the nominal wage can never decline.
C)Both the nominal and the real wage must always rise.
D)The nominal and the real wage may both fall.

Question

Quizplus · Accepted Answer

The nominal wage refers to the wage paid in current dollars, without adjusting for inflation, while the real wage adjusts for inflation to reflect the purchasing power of the wage. Both nominal and real wages can fall due to various economic factors such as deflation, economic downturns, or changes in labor demand.

Which of the Following Is Correct