If workers' nominal wages have risen by 50% over a 10 years and prices have increased by 40% in that same period, then we can safely conclude that the amount of goods and services workers can buy has:

Question

Quizplus · Accepted Answer

The amount of goods and services workers can buy has increased because although prices have increased by 40%, workers' nominal wages have increased by 50%. This means workers have more purchasing power and can buy more goods and services even after accounting for the increase in prices.

If Workers' Nominal Wages Have Risen by 50% Over a 10