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XYZ company agreed to pay its workers $41 an hour in 1999 and $45 an hour in 2001. The CPI in 1999 was 166 and in 2001 was 180. Calculate the real wage rate in each year​ (to the nearest​ cent). Did these workers really get a pay raise between 1999 and​ 2001? Round up your answer to the second decimal. The real wage rate in 1999 was $ _____. The real wage rate in 2001 was $ _____.

Respuesta :

Answer:

The real wage rate in 1999 and 2001 is $24.69 and $25.00 respectively.

Explanation:

In this question, we use the formula of the real wage rate which is shown below:

Real wage rate formula = (Normal wages per hour ÷ CPI of a particular year) × 100

So, For 1999, the real wage rate is

= $41 ÷ 166 × 100 = $24.69

So, For 2001, the real wage rate is

= $45 ÷ 180 × 100 = $25.00

By comparing these real wage rate, we get to know that in 2001 the wage rate is slightly rising by $0.31 ($25 - $24.69)

Hence, The real wage rate in 1999 and 2001 is $24.69 and $25.00 respectively.

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