Answer:
Nominal wages refer to the amount of money that an employee earns in terms of current dollars or the dollar amount stated in a contract. It is the wage rate that is paid to an employee without adjusting for the changes in the purchasing power of money over time.
Real wages, on the other hand, are nominal wages adjusted for inflation. Real wages are the purchasing power of the nominal wages or the actual amount of goods and services that an employee can buy with his or her wages. Real wages reflect the changes in the cost of living over time and provide a more accurate picture of an employee's standard of living.
Step-by-step explanation: