Refer to the information provided in Table 30.2 below to answer the question(s) that follow.
Table 30.2
-Refer to Table 30.2. What is the real wage rate in 2015 using 2016 as the base year?
A) $11.20
B) $10.80
C) $6.65
D) $5.71

Question

Refer to the information provided in Table 30.2 below to answer the question(s) that follow.
Table 30.2 
-Refer to Table 30.2. What is the real wage rate in 2015 using 2016 as the base year?
A) $11.20 
B) $10.80 
C) $6.65 
D) $5.71

Quizplus · Accepted Answer

The real wage rate is calculated by adjusting the nominal wage rate for inflation using the Consumer Price Index (CPI). If 2016 is the base year, the CPI for 2016 is 100. The real wage rate in 2015 is calculated by dividing the nominal wage rate in 2015 by the CPI for 2015 and then multiplying by 100. The correct calculation leads to $11.20.

Refer to the Information Provided in Table 30