Nominal wages:
- the actual wage you are paid ($) (not adjusted to inflation)
Real wage:
- what you can buy with your wages (income) (adjusted to inflation)
Questions:
- what are real wages: what you are able to buy with your wages
- what is happening to real wages in Australia?: real wages are decreasing due to inflation
- what are the effects of falling real wages in Australia?: individuals are not able to spend as much with their wages