Question : Real wage is :
Option 1:
Option 2:
Option 3:
Option 4:
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Correct Answer:
Solution : Correct Answer is Money wage/ Price level
Real wages reflect the effects of inflation and demonstrate the relative purchasing power of a paycheque. The amount of the good that one hour of work can buy is transparently measured by the real wage rate, which is the nominal wage rate divided by the good's price. Real wages, then, account for variations in the level of prices for goods and services over time.
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