Which statement best explains why real wages might grow even if nominal wages rise by the same amount?

Which statement best explains why real wages might grow even if nominal wages rise by the same amount?

• A. Real wages rise if prices fall across the economy
• B. Real wages rise when the cost of living decreases
• C. Real wages rise if the increase in nominal wages outpaces inflation
• D. Real wages are unaffected by wage changes

Answer: (C)