Question

If your nominal wage rises from $10 to $12 while the CPI rises from 150 to 180 will your real wage increase, decrease, or stay the same?
A. Stay the same B. Decrease C.
Increase​

Answer 1

Answer:

A. Stay the same

Explanation:

We need to compare the rate of price change and the rate of inflation.

Rate of price change =     $12 - $10   x 100

     $10

=2/10 x 100

=0.2 x 100

=20%

inflation rate= CPI year 2​- CPI year 1    x 100 %

                           CPI year 1​​

  =180 -150    x 100

   150

=30/150 x 100

=0.2 x 100

=20%

The price change are the inflation rate are the same.The real wages will stay the same

Answer 2

PLEASE HELP!!

Leonardo da Vinci took out a simple interest loan at 12.75% interest for 12 months. His
previous balance is $942.36. What is his final payment if the loan is paid off with the next
payment?