Is it possible for nominal wages to decrease while real wages increase?
What will be an ideal response?
Yes, though unlikely. This would imply that prices have fallen, and that the decrease is sufficiently negative to offset any losses in nominal wages.
Economics
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When the Federal Reserve conducts open market transactions, it
A) buys or sells corporate bonds in the bond market. B) issues government bonds to raise funds for the government. C) makes credit available to financial institutions in crises D) buys or sells previously issued government bonds.
Economics
Other things equal, an improvement in productivity will:
A. increase the equilibrium price level. B. shift the aggregate supply curve to the left. C. shift the aggregate supply curve to the right. D. shift the aggregate demand curve to the left.
Economics