Suppose That Colleen's Nominal Wage Rate Was $20 Per Hour

question 18

Multiple Choice

Suppose that Colleen's nominal wage rate was $20 per hour in 1998,the base year for the CPI.If the CPI in 2003 was 120.0 and her nominal wage had risen to $22 per hour,what was her real wage in 2003?

• A) $16.67
• B) $18.33
• C) $22.00
• D) $26.40
• E) her real wage for 2003 cannot be determined with the information given

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