(2012 = 100) item ood lothing uel and lighting 132 60% 154 12% 147 16% ousing liscellaneous 178 8% 158 4%

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter6: How Statisticians Measure Inflation
Section6.A: How Statisticians Measure Inflation
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The following information relating to workers in an industrial town is given :
Items of Consumption
Consumer Price Index
2017
(2012 = 100)
Proportion of
Expenditure on
item
Food
132
60%
Clothing
Fuel and lighting
Housing
154
12%
147
16%
178
8%
Miscellaneous
158
Average wage per month in 2012 is Rs. 5,000. What should be dearness allowance
expressed as % of wages? What should be the average wage per worker per month in year
2017 in that town so that the standard of living of the workers does not fall below the 2012 level ?
4%
Transcribed Image Text:The following information relating to workers in an industrial town is given : Items of Consumption Consumer Price Index 2017 (2012 = 100) Proportion of Expenditure on item Food 132 60% Clothing Fuel and lighting Housing 154 12% 147 16% 178 8% Miscellaneous 158 Average wage per month in 2012 is Rs. 5,000. What should be dearness allowance expressed as % of wages? What should be the average wage per worker per month in year 2017 in that town so that the standard of living of the workers does not fall below the 2012 level ? 4%
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