Suppose workers agreed to an indexed contract that increased their nominal wage by 4 percent plus 25 percent of any increase in the Consumer Price Index (CPI).If the CPI increased by 8 percent,what would be the change in the real wage?
A) 4 percent
B) -2 percent
C) 0 percent
D) -4 percent
E) 2 percent

Question

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The Answer of Suppose workers agreed to an indexed contract that increased their nominal wage by 4 percent plus 25 percent of any increase in the Consumer Price Index (CPI).If the CPI increased by 8 percent,what would be the change in the real wage?
A) 4 percent
B) -2 percent
C) 0 percent
D) -4 percent
E) 2 percent

Suppose Workers Agreed to an Indexed Contract That Increased Their