Based on the information in the figure of average real wages of skilled workers in London between 1264 and 2001, which of the following statements is correct?
Understand the Problem
The question is asking which statement regarding the average real wages of skilled workers in London between 1264 and 2001, as depicted in a graph, is correct. It involves understanding economic concepts related to the Malthusian trap and wage growth.
Answer
Some of the rapid rise in wages depicted can be attributed to inflation.
Some of the rapid rise in wages depicted can be attributed to inflation.
Answer for screen readers
Some of the rapid rise in wages depicted can be attributed to inflation.
More Information
The graph displays a notable increase in real wages post-1850. Although the Malthusian trap theory might suggest demographic factors, the significant wage rise is more likely due to economic changes like industrialization. Inflation reduces the real purchasing power, indicating some increase can be attributed to it.
Tips
Forgetting that real wages account for inflation could lead to misunderstanding dynamics shown in the graph.
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