Which of the following is true about real wages?
A) Only workers care more about the real wage than the nominal wage.
B) Only employers care more about the real wage than the nominal wage.
C) Both workers and employers care more about the real wage than the nominal wage.
D) Both workers and employers care more about the nominal wage than the real wage.
E) Neither workers nor employers care about the real wage or the nominal wage.

Question

Quizplus · Accepted Answer

Both workers and employers care more about the real wage than the nominal wage. Real wages measure the purchasing power of the nominal wage, taking into account inflation, so it is relevant for both workers and employers to consider real wages in their decision-making. For workers, the real wage determines their standard of living, while for employers, the real wage affects the cost of production and the profitability of the business.

Which of the Following Is True About Real Wages