The Consumer Price Index Is 132 in Year 1 and 125

question 37

Multiple Choice

The consumer price index is 132 in Year 1 and 125 in Year 2. The nominal wage rate is $31 in Year 1 and $30 in Year 2. What is the approximate percentage change in the real wage rate from Year 1 to Year 2?

• A)-5.3 percent
• B)6 percent
• C)-3.2 percent
• D)2.1 percent

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Definitions:

Positive Reinforcement

A concept in behavioral psychology where a behavior is encouraged by rewarding it, thereby increasing the likelihood of its recurrence.

Aversive Punishment

Aversive Punishment involves applying an unpleasant stimulus with the goal of decreasing or eliminating an undesirable behavior.

Negative Reinforcement

The strengthening of a behavior because it removes or decreases an unpleasant experience or outcome.

Aversive Punishment

A form of punishment that involves introducing an unpleasant or painful stimulus in order to reduce the likelihood of a behavior reoccurring.