Asked by Dorothy Stanislaw on Jul 01, 2024
Verified
In the year 2020,suppose the average college graduate could get a job starting at $100,000/year.How would the real wages earned by the average college graduate in 2010 compare with that of today's average college graduate?
A) They will be higher.
B) They will be lower.
C) They will be about the same.
D) There is no way of knowing.
Real Wages
Real wages refer to the purchasing power of wages, taking into account inflation, showing the quantity of goods and services that can be bought.
- Gain an understanding of the linkage among nominal wages, real wages, and the consumer price index.
Verified Answer
ND
Nicole Doherty6 days ago
Final Answer :
D
Explanation :
Real wages take into account the purchasing power of money, which can be affected by inflation, cost of living changes, and other economic factors over time. Without information on these factors from 2010 to 2020, it's impossible to determine how real wages compare.
Learning Objectives
- Gain an understanding of the linkage among nominal wages, real wages, and the consumer price index.