The Consumer Price Index Is 113 in Year 1 and 118

question 174

Multiple Choice

The consumer price index is 113 in Year 1 and 118 in Year 2. The nominal wage rate is $8 in Year 1 and $9 in Year 2. What is the approximate percentage change in the real wage rate from Year 1 to Year 2?

• A) 2 percent
• B) 4 percent
• C) 6 percent
• D) 8 percent

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Definitions:

Guiding Rules

Principles or directives that influence decision-making and behavior within an organization.

Variation in Values

Refers to the differences in beliefs, priorities, or principles among individuals or groups within a society or organization.

Interpretations

The act of explaining or providing the meaning of something, often involving different perspectives or analysis.

Moral-rights View

A perspective in ethics which suggests that individuals have fundamental rights and freedoms that are to be respected and protected, often regardless of outcomes.