Which of the following statements about the nominal and the real wage rates is correct?
A) The nominal wage rate equals the real wage rate divided by the CPI and then multiplied by 100.
B) The nominal wage rate is measured in the dollars of a base year.
C) The real wage rate is measured in current year dollars.
D) The real wage rate indicates how many goods and services can be purchased with an hour's labor.
E) The real wage rate equals the nominal wage rate multiplied by the CPI then divided by 100.
D
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Refer to the figure above. If the relative price of T were to increase, then the price line would
A) shift out in a parallel fashion. B) shift in a parallel fashion. C) become steeper. D) become flatter.
The costs of labor and land used to produce a product is
A) administrative costs. B) costs of goods sold. C) net profit plus the cost of capital. D) none of these choices.