ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know
A) Australia's inflation rate between 2007 and 2008.
B) Australia's price level in 2008.
C) the core inflation rate in Australia in 2008.
D) the exchange rate between the U.S. dollar and the Australian dollar.

Question

Quizplus · Accepted Answer

To calculate the real wage rate, you need to know the price level in the given year (2008) to adjust the nominal wage ($13,308) for inflation, thereby reflecting the purchasing power of the wage.

ABC News in Australia Reported That the Average Annual Wage