If w is the growth rate of the nominal wage rate,p is the inflation rate as measured by the price deflator for total GDP,y is the growth rate for total domestic product,and n is the growth rate of labor,then the growth of real wage is ________.
A)wp/n
B)y - p
C)w - p
D)wn/p

Question

Quizplus · Accepted Answer

Real wage growth is calculated as the difference between the growth rate of nominal wages and the inflation rate. Therefore, real wage growth = w - p.

If W Is the Growth Rate of the Nominal Wage