Discuss the concept of money wage and real wage and how are competitive wages deermined
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Money wages are those wages which are given to the employee or labor as he is promised at the time of hiring and thus it does not take into consideration the inflation in the market. It is also called nominal wages.
Real Wages on the other hand takes into consideration the inflation in the market and accordingly wages are paid. It determine the purchasing power of the individual.
Competitive wages are determined by the supply of and demand of labor.
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