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What is the concept of cash wage? Money Wages Vs Real Wages Money wage can be defined as the nominal wage that an individual receives for his work. What is the concept of real wage? The real wage can be defined as the volume of goods and services that an individual receives as a result of the monetary wage he receives. Economic problems resulting from the discrepancy between real and monetary wages? Here, the gap occurs between the two wages, which is called "monetary deception" When the general level of prices rises, we find that the individual still gets his fixed cash wage as it is, but his real wage has decreased because the amount of goods and services he received has declined.  The foregoing is called a decrease in per capita consumption spending, and thus the economic well-being of individuals decreases and society enters into a state of economic recession.  Therefore, when prices rise, the cash wage of individuals must increase in the same proportion so that the gap d