If the Anticipated Rate of Inflation Is 5% and Workers
If the anticipated rate of inflation is 5% and workers agree to a wage increase of 4%,if the anticipated rate occurs,then nominal wages will
A) fall by 1%.
B) rise by 4%.
C) rise by 5%.
D) fall by 5%.
To calculate real wages in Year 1,it is correct to divide nominal wages in Year 1 by the CPI in year 1,and multiply the resultant figure by 100.
Assume that the CPI in 2018 was 217,while the CPI in 1990 was 82.If a person had $6000 in 1990,its equivalent purchasing power in 2018 would be $10 850.
Using the following table,calculate real average hourly earnings for 2016,2017,and 2018.Calculate the rate of growth of real average hourly earnings from 2017 to 2018.