If the nominal wage is $30 in 2011 and the CPI is 202 in 2011, then the real wage in 1982-1984 dollars

Question

BlackTom AI · Accepted Answer

To find the real wage in 1982-1984 dollars, we convert the 2011 nominal wage into the base-year dollars using the price level in both periods.
First, identify the standard conversion formula: Real wage in base-year dollars = Nominal wage × (CPI in base year / CPI in current year).
Next, plug in the values: Nominal wage = $30 in 2011, CPI in 2011 = 202, and CPI in the base year (1982-1984) = 100 (the base period is typically indexed to 100).
Compute the ratio: 100 / 202 ≈ 0.49505.
Multiply by the nominal wage: $30 × 0.49505 ≈ $14.8515.
Rounding to two decimals yields about $14.85 in 1982-1984 dollars.
If options were present, this would correspond to the choice stating roughly $14.85; any alternative that uses a different base-year CPI or an incorrect formula would be misleading.
Note: The key concept here is real wage = nominal wage adjusted by the price level using the base-year CPI, ensuring comparability across time by removing purchasing power differences due to inflation.

ECON 210-003 Homework 6

If the nominal wage is $30 in 2011 and the CPI is 202 in 2011, then the real wage in 1982-1984 dollars

查看解析

登录即可查看完整答案

类似问题

If inflation is 6 percent and a worker receives a 4 percent nominal wage increase, then the worker's real wage:

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单