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A Labour Contract Provides for a First-Year Wage of $15

Question 71

Multiple Choice

A labour contract provides for a first-year wage of $15 per hour,and specifies that the real wage will rise by 2% in the second year of the contract.The consumer price index (CPI) is 100 in the first year and 109 in the second year.What dollar wage must be paid in the second year?


A) $15.00 per hour.
B) $15.30 per hour.
C) $16.09 per hour.
D) $16.68 per hour.
E) $17.09 per hour.

Correct Answer:

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