Which of the following statements correctly characterizes the trend in real wages since 1960?

Question

Quizplus · Accepted Answer

The real product wage, which reflects the purchasing power of wages in terms of goods and services produced, has generally kept pace with labor productivity increases since 1960. However, the real consumption wage, which measures the purchasing power of wages in terms of consumer goods and services, has not seen the same growth, remaining relatively stagnant. This discrepancy highlights the difference between wage growth in terms of what workers produce versus what they can consume.

Which of the Following Statements Correctly Characterizes the Trend in Real