The consumer price index is 113 in Year 1 and 118 in Year 2. The nominal wage rate is $8 in Year 1 and $9 in Year 2. What is the approximate percentage change in the real wage rate from Year 1 to Year 2?
A) 2 percent
B) 4 percent
C) 6 percent
D) 8 percent

Question

Quizplus · Accepted Answer

The Answer of The consumer price index is 113 in Year 1 and 118 in Year 2. The nominal wage rate is $8 in Year 1 and $9 in Year 2. What is the approximate percentage change in the real wage rate from Year 1 to Year 2?
A) 2 percent
B) 4 percent
C) 6 percent
D) 8 percent

The Consumer Price Index Is 113 in Year 1 and 118