Workers will more readily accept a real wage cut that arises from an increase in the consumer

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Workers will more readily accept a real wage cut that arises from an increase in the consumer prices than a cut in their nominal wage rate.
Explain why inflation influences a worker’s real wage rate. Why might this observation be true?

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Macroeconomics Canada in the Global Environment

ISBN: 978-0321778109

8th edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Dec 19, 2015 04:49 AM

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Workers will more readily accept a real wage cut that arises from an increase in the consumer

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The real wage rate equals the nominal wage rate divided by the price level Inflation ...View the full answer

Macroeconomics Canada in the Global Environment

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