The term 'real wage' means the money wage" ?
Correct answer: B. allowing for change in prices.
- A. after tax
- B. allowing for change in prices.
- C. Plus, benefits in kind
- D. plus, overtime payments.
Explanation
Real wage measures the purchasing power of a money wage after allowing for changes in the price level. Dividing the money wage by a price index shows how much goods and services the wage can actually buy.
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