Refer to the information provided in Table 30.1 below to answer the question(s) that follow.
Table 30.1
-Refer to Table 30.1. What is the real wage rate in 2015 using 2014 as the base year?

Question

Refer to the information provided in Table 30.1 below to answer the question(s) that follow.
Table 30.1 
-Refer to Table 30.1. What is the real wage rate in 2015 using 2014 as the base year?

Quizplus · Accepted Answer

The real wage rate is calculated by adjusting the nominal wage rate for inflation using the base year price index. If the nominal wage in 2015 is $10.00 and the price index for 2015 is 140 (with 2014 as the base year, index 100), the real wage is $10.00 / 1.40 = $7.14.

Refer to the Information Provided in Table 30