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  • Definition of the Real Wage

Formula for the Real Wage

The real wage (ww) is defined as the nominal wage (WW) divided by the general price level (PP). This relationship is expressed by the formula: w=WPw = \frac{W}{P}. It is a foundational assumption within the WS-PS model.

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References

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Economics

Economy

Introduction to Macroeconomics Course

Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ

The Economy 2.0 Macroeconomics @ CORE Econ

CORE Econ

Social Science

Empirical Science

Science

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