If actual inflation is less than expected inflation,what is the relationship between the actual real wage and the expected real wage?

Question

Quizplus · Accepted Answer

If actual inflation is less than expected inflation, it means that prices have risen less than anticipated. As a result, purchasing power has increased more than expected. Real wages measure purchasing power or the ability to buy goods and services. Thus, if inflation is lower than expected, real wages will be higher than expected, indicating that workers can buy more goods and services than they anticipated. Therefore, the actual real wage will be higher than the expected real wage.

If Actual Inflation Is Less Than Expected Inflation,what Is the Relationship