The real wage equals the nominal wage ________ the CPI, all times 100.
A)divided by
B)times
C)minus
D)plus
E)to the power of

Question

Quizplus · Accepted Answer

The real wage is calculated by dividing the nominal wage by the Consumer Price Index (CPI) and then multiplying by 100 to convert it into a percentage. This adjusts the nominal wage for inflation, providing a measure of the purchasing power of the wage.

The Real Wage Equals the Nominal Wage ________ the CPI