Refer to the information provided in Table 15.1 below to answer the questions that follow.
Table 15.1
-Refer to Table 15.1. What is the real wage rate in 2016 using 2015 as the base year?
A) $9.28
B) $9.58
C) $17.64
D) $19.00

Question

Refer to the information provided in Table 15.1 below to answer the questions that follow.
Table 15.1 
-Refer to Table 15.1. What is the real wage rate in 2016 using 2015 as the base year?
A) $9.28 
B) $9.58 
C) $17.64 
D) $19.00

Quizplus · Accepted Answer

To calculate the real wage rate, we divide the nominal wage rate of each year by the CPI of that year and then multiply it by 100 using the base year as 100. So, for 2016, the calculation would be (10.21/108.524)*100 = 9.42. Therefore, the real wage rate in 2016 using 2015 as the base year is $9.42. The closest option is B, which is $9.58.

Refer to the Information Provided in Table 15