AP Macroeconomics- Real vs. Nominal Wages

In order to figure out how "rich" a person is, we have to compare their wage to the amount that wage can buy. $1,000,000 may seem like a lot of money, but if milk costs $10,000,000, it doesn't seem so large.

[@mohammedodeh7601]

Chef's kiss to this video, thank you

[@nay__im]

Love the video! The outfit makes is more interesting to watch as well lol

[@lallilugo8418]

thank you sir. im studying for a test tmrw and i wanna cry! but this helped a bit so thank you! :)!!!!!

[@ShortsGoneLong]

its only been a minute and i understand already wow u should be a teacher buddy

[@CarlosRamirez-ix3dd]

Thanks for explaining this, it really helped me a lot.

[@arashi_fit]

thank you buddy .explaination was very helpful

[@econgurusutton1589]

I don't think we have enough information to determine this especially since to figure out the real wage you need to compare your wage to the price level.

[@shiveshpatel1621]

Assuming that the monthly salary for a platinum miner is 12 500, how do I calculate the nominal wage and calculate the real wage? monthly salary is the only information given

[@tusharbkumar6035]

At the end how did the real wage go down?? The real wage has increased by 10percent then why did you showed it decreasing??

[@econgurusutton1589]

+Tushar B.kumar Careful. The price level (the groceries) have gone up 10%. The nominal wage increased by 5%. So, I'm paying more for my groceries, but my pay check hasn't been able to keep pace with my grocery bill. I feel poorer, which is a sign that my real wage has decreased. Hope that helps!