Ontario's hourly minimum wage was fixed at $6.85 over the period from 1995 to 2000.The province's CPI increased from 104.3 in 1995 to 107.4 in 2000.In real terms,Ontario's minimum wage _______ by _______ between 1995 and 2000.

Question

Quizplus · Accepted Answer

The real minimum wage is calculated by adjusting for inflation using the CPI. The CPI increased from 104.3 to 107.4, indicating inflation. Since the nominal wage remained the same at $6.85, the real wage decreased. The percentage decrease can be calculated as ((104.3 - 107.4) / 104.3) * 100 = -2.97%, approximately 3%.

Ontario's Hourly Minimum Wage Was Fixed at $6