Real wages, nominal wages, and unexpected changes in the price level
Deborah currently earns a ___ wage of $12.00 per hour; in other words, the amount of her paycheck each week $12.00 per hour times the number of hours she works. Suppose the price of sparkling water is $2.50 per gal lon; in this case, Deborah's ___ wage, in terms of the amount of sparkling water she can buy with her paycheck, is ___ gallons of sparkling water per hour.