Which of the Following Statements About the Nominal and the Real

question 273

Multiple Choice

Which of the following statements about the nominal and the real wage rates is correct?

• A)The nominal wage rate equals the real wage rate divided by the CPI and then multiplied by 100.
• B)The nominal wage rate is measured in the dollars of a base year.
• C)The real wage rate is measured in current year dollars.
• D)The real wage rate indicates how many goods and services can be purchased with an hour's labor.
• E)The real wage rate equals the nominal wage rate multiplied by the CPI then divided by 100.

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