Examlex
The basic picture element is known as a
Real Wages
Wages adjusted for inflation, representing the actual purchasing power of income received by workers.
Nominal Wage
The wage earned by a worker expressed in current dollars, without adjustments for inflation.
Price Index
An index number that shows how the weighted-average price of a “market basket” of goods changes over time relative to its price in a specific base year.
Real Wage
The purchasing power of a person's earnings, accounting for inflation, defining what goods and services can actually be bought with wages.
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