Respuesta :
Answer:
decreases by 10%
Explanation:
real wage = nominal wage - inflation rate
if nominal wage decreased by 4% and inflation was 6%, then:
real wage = -4% - 6% = -10%
Real wages are nominal wages adjusted to inflation. Inflation represents a rise in the general price level which decreases the purchasing power.
Based on the information given real wage will decrease by approximately 10%.
Using this formula
Percentage change in Real wage = Percentage change in nominal wage - Actual inflation rate
Where:
Percentage change in nominal wage=4%
Actual inflation rate=6%
Let plug in the formula
Percentage change in real wage = -4% - 6%
Percentage change in real wage= -10%
Inconclusion real wage will decrease by approximately 10%.
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