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If the Consumer Price Index (CPI)increases from 100 to 200

question 57

Multiple Choice

If the Consumer Price Index (CPI) increases from 100 to 200 and the nominal wage increases from $100 to $400,what is the change in the real wage in terms of the beginning year's dollars?


Definitions:

Veil Of Ignorance

A principle that one should design society's rules as if they do not know their own socioeconomic position, to ensure fairness.

Equality Of Opportunity

The ideal that all individuals should have the same chances to pursue success or advancement, regardless of their background or circumstances.

Income Distribution

How the total earnings are distributed among the members of a community.

John Rawls

A philosopher known for developing the theory of justice as fairness, which considers how societal resources can be distributed equitably.

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