Question

Suppose nominal wages never changed. What would be the significance of such a characteristic?

Answer 1

Explanation:

nominal wage is not adjusted for inflation. ... If your nominal wage increases slower than the rate of inflation, then your purchasing power will decline.

pls mark branlist answer

Answer 2

If nominal wages are never changed then that lead to change in Real wages

Explanation:-

Nominal wage = Rate of wages that is paid to workers in their own currency. Such as if Rs. 2000 is paid to per person per month. Then nominal wage is Rs. 2,000.

But if nominal wages are reduced or are not raised, then real wages may reduce or fall during a economic inflation. If nominal wages rises more than inflation then real wages are increased or higher and vice versa if they are reduced or they fall then inflation.

If nominal wages are not changed then that state that inflation tends to be positive and the real wages will reduce or fall and if they are changed then inflation tends to be negative and real wages will increase or grows up.