contestada

When the CPI increases from 200 in 2016 to 210 in 2017 and the nominal wage rate is constant at​ $10 an​ hour, the real wage rate​ _______.

Respuesta :

Answer:

Decrease by 5%

Explanation:

Data provided in the question:

CPI in 2016 = 200

CPI in 2017 = 210

Constant wage rate = $10 an hour

Now,

CPI change during the period = [ CPI in 2016 ÷ CPI in 2017 ] × 100%

= [ 200 ÷ 210 ] × 100%

= 95.23% ≈ 95%

Hence,

The the real wage rate will decrease by (100% - 95%) i.e 5%

Otras preguntas