In order to determine if the quantity of goods and services that an hour's work can buy has increased or decreased between 2000 and 2015,one should compare the

Question

Quizplus · Accepted Answer

In order to determine if the quantity of goods and services that an hour's work can buy has increased or decreased between 2000 and 2015, we need to compare the real wage in both years. Real wage takes into account inflation and represents the purchasing power of the wage. If the real wage has increased between 2000 and 2015, workers can buy more goods and services with an hour's work, and if it has decreased, workers can buy fewer goods and services with an hour's work. Therefore, the best choice is to compare the 2000 real wage with the 2015 real wage.

In Order to Determine If the Quantity of Goods and Services