Table 0.4 gives average hourly nominal wages in manufacturing and the price leve
ID: 1193624 • Letter: T
Question
Table 0.4 gives average hourly nominal wages in manufacturing and the price levels in the Montegnon from 1984 to 1989. For each year, calculate the real wage. In what year did the nominal wage increase the most? In what year did the real wage increase the most? Did you get the same years for both (b) and (c)? If you did not, what accounts for the difference? True, false, uncertain or not enough information? "It is not possible to have a situation where the nominal wage is falling and the price level is falling, while the real wage still increases?" Provide a numerical example and an explanation.Explanation / Answer
b) from the above table, nominal wage increased most in 1986.
c) from the above table, real wage increased most in 1989.
d) values were differnece due to the inflation and price level.
e) false
Year Nominal Real Price level Increase in nominal Increase in real 1984 12.07 8.14 148.20 1985 12.37 8.12 152.40 2.49% -0.34% 1986 12.77 8.14 156.90 3.23% 0.27% 1987 13.17 8.21 160.50 3.13% 0.82% 1988 13.49 8.28 163.00 2.43% 0.86% 1989 13.91 8.35 166.60 3.11% 0.89%Related Questions
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