If a person is to maintain a previous level of real wages, then a pay increase must be roughly equivalent to the ________.

Question

Quizplus · Accepted Answer

A) Although not a problem in recent years, the logic for using cost of living as a pay determinant is both simple and sound: when prices rise over time and pay does not, real pay is actually lowered. A pay increase must be roughly equivalent to the increased cost of living if a person is to maintain his or her previous level of real wages.

If a Person Is to Maintain a Previous Level of Real