The Reason That Economists Are Concerned with Looking at the Real

Multiple Choice

The reason that economists are concerned with looking at the real wage is that

A) the real wage shows absolute buying power and allows economists to compare U.S.pay to that of other countries.
B) because of inflation, the nominal wage often understates the actual rise in purchasing power.
C) the real wage simplifies the gathering of statistics.
D) standard of living and pay really are determined by purchasing power, not number of dollars.
E) the real wage shows that pay actually has been falling for a long time.