The real wage rate measures
A) nominal wages after taxes
B) what workers are paid in terms of this year's dollars
C) what workers are paid in terms of purchasing power
D) what workers have available for spending after paying their bills
E) the number of dollars earned by workers

Question

Quizplus · Accepted Answer

The real wage rate measures what workers are paid in terms of purchasing power, which takes into account the effect of inflation on the value of their wages. It is important to look at the real wage rate when considering changes in the standard of living for workers.

The Real Wage Rate Measures