T / F The real wage can increase only if the nominal wage increases.?

Question

T / F The real wage can increase only if the nominal wage increases.

Answer 1

FALSE
Real wages can increase if the value of goods drops.

If gas goes from $3 per gallon to $2 per gallon Real wages increase. (because you can now buy more gas)

Nominal wages are wages measured in terms of money and not by their ability to command goods and services.