Which of the Following Statements About the Nominal and Real

Multiple Choice

Which of the following statements about the nominal and real wage rates is correct?

A) The nominal wage rate is measured in the dollars of a base year.
B) The real wage rate indicates how many goods and services can be purchased with an hour's labour.
C) The nominal wage rate equals the real wage rate divided by the CPI and then multiplied by 100.
D) The real wage rate is measured in current year dollars.
E) The real wage rate equals the nominal wage rate multiplied by the CPI then divided by 100.