The real wage is equal to the:
a. wage measured in terms of the quantity of goods and services it buys
b. wage measured in terms of the dollar value of the goods and services it buys.
c. nominal wage net of taxes paid on wages.
d. non-wage benefits received by workers.
e. product of the nominal wage and the price level.
Answer: a. wage measured in terms of the quantity of goods and services it buys
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