The nominal wage represents _____
A) the wage measured in terms of the quantity of goods and services a worker can purchase with it.
B) the wage measured in terms of the dollar value of the goods and services a worker can purchase with it.
C) the real wage from which personal taxes have been deducted.
D) the standard of living of workers across time.
E) the change in real wage brought about by changes in aggregate supply.

Question

Quizplus · Accepted Answer

The nominal wage is measured in terms of the dollar value (or the value in whatever currency is being used) of the goods and services a worker can purchase with it. This is distinct from the real wage, which is adjusted for inflation and reflects the purchasing power of the wage.

The Nominal Wage Represents _____