Suppose a workers' union managed to sign a new wage contract with the employer for a 5% nominal wage increase for the coming year. The union also believes that the inflation rate next year is going to be 5%. Which of the following is CORRECT? The real wage has decreased by 5% O b. The real wage has increased by 10% None of the answers is correct O d. The real wage has increased by 5%
Suppose a workers' union managed to sign a new wage contract with the employer for a 5% nominal wage increase for the coming year. The union also believes that the inflation rate next year is going to be 5%. Which of the following is CORRECT? The real wage has decreased by 5% O b. The real wage has increased by 10% None of the answers is correct O d. The real wage has increased by 5%
Chapter6: How Statisticians Measure Inflation
Section: Chapter Questions
Problem 6TY
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