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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