Real Wages Are Defined as

question 21

Multiple Choice

Real wages are defined as

• A) inflation-adjusted wages.
• B) nominal wages plus the expected rate of inflation.
• C) the purchasing power of the wage earned per hour worked.
• D) income after adjusting for productivity.
• E) the average money wage for all workers.

---

Definitions:

Equity

The value of an owner's interest in a property or business, calculated by subtracting liabilities from assets.

Debits

Entries on the left-hand side of an account that represent the increase in assets or expenses or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, recorded on the right side of a ledger.

Accounts

Records that summarize and classify all financial transactions of a business, including assets, liabilities, equity, revenue, and expenses.