Level of Wages
Overview
The supply of labor in an economy follows the normal rules of
Supply and Demand.
Measuring
- Nominal Wage - the price of labor (in dollars) per hour or other time unit. This is generally computed as an
average
- Real Wage - the real wage is the nominal wage divided by the price of some basket of goods that is
thought to be representative of level of prices in the economy.
(see price and inflation)
