Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1

-Refer to Table 16.1.From 2012 to 2013 the real wage

Question

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1
 
-Refer to Table 16.1.From 2012 to 2013 the real wage

Quizplus · Accepted Answer

From the table, we can see that the nominal wage rises from $20 to $22 between 2012 and 2013. However, the consumer price index (CPI) also rises from 100 to 110 during the same period. Therefore, the real wage (which accounts for inflation) falls from $20 to $20/1.1=$18.18.

Refer to the Information Provided in Table 16