danashasoleil
contestada

If your nominal wage rises from $10 to $12 while the CPI rises from 150 to 180 will your real wage increase, decrease, or stay the same?

A. Stay the same B. Decrease C.
Increase​

Respuesta :

Samawati

Answer:

A. Stay the same

Explanation:

We need to compare the rate of price change and the rate of inflation.

Rate of price change =     $12 - $10   x 100

     $10

=2/10 x 100

=0.2 x 100

=20%

inflation rate= CPI year 2​- CPI year 1    x 100 %

                           CPI year 1​​

  =180 -150    x 100

   150

=30/150 x 100

=0.2 x 100

=20%

The price change are the inflation rate are the same.The real wages will stay the same

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