If the nominal wage is $30 in 2009 and the CPI is 202 in 2009, then the real wage in 1982-1984 dollars

Question

Quizplus · Accepted Answer

To find the real wage in 1982-1984 dollars, we need to adjust the nominal wage for inflation using the CPI. We first need to find the CPI for the base year of 1982-1984, which is 100.

Then, we use the formula:

Real wage = (Nominal wage / CPI in current year) x CPI in base year

Real wage = ($30 / 202) x 100

Real wage = $14.85

Therefore, the real wage in 1982-1984 dollars is $14.85.

If the Nominal Wage Is $30 in 2009 and the CPI