If the Consumer Price Index (CPI)decreases from 100 to 50

question 3

Multiple Choice

If the Consumer Price Index (CPI) decreases from 100 to 50 and the nominal wage decreases from $200 to $50,what is the change in the real wage in terms of the beginning year's dollars?

• A) +$200
• B) -$100
• C) +$50
• D) -$200
• E) +$250

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Definitions:

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A senior official within the U.S. government responsible for managing government revenue, including the issuance of currency and the administration of fiscal policies.

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A fiscal policy wherein a central government shares part of its tax revenue with lower levels of government, such as states or municipalities.

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A Lemhi Shoshone woman who assisted the Lewis and Clark Expedition as an interpreter and guide in the early 19th century.