Other things constant, which of the following is inversely related to inflation?
A)nominal wage only
B)real wage only
C)average price level in the economy
D)both nominal wage and real wage

Question

Quizplus · Accepted Answer

Real wage is inversely related to inflation because as the average price level in the economy increases, the purchasing power of wages decreases if nominal wages remain constant.

Other Things Constant, Which of the Following Is Inversely Related