Nominal Wages
Definition
Nominal wages refer to the amount of money a worker receives in their paycheck. It represents the actual dollar amount paid to an employee for their work.
Related terms
Real Wages: Real wages take into account inflation and measure the purchasing power of workers' earnings.
Wage Stickiness: Wage stickiness refers to the resistance or inability of wages to adjust quickly in response to changes in economic conditions.
Cost-push Inflation: Cost-push inflation occurs when rising production costs, such as higher wages, lead to an increase in overall prices.
"Nominal Wages" appears in:
Study guides (1)
AP Macroeconomics - 2.5 Costs of Inflation
Practice Questions (1)
Which group may benefit from unanticipated inflation if they can reduce nominal wages without reducing workers' purchasing power?
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Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.