The CPI Equals 1

question 45

Multiple Choice

The CPI equals 1.00 in year one and 1.05 in year two. If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two?

• A)$14.29
• B)$15.00
• C)$15.75
• D)$16.05

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Definitions:

Traumatic

Relating to or causing physical or emotional injury or distress.

Stressful Experiences

Situations or events that cause a significant amount of stress or anxiety.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying or traumatic event, characterized by flashbacks, nightmares, and severe anxiety.

Bullet Wound

A penetrating injury caused by a bullet, often requiring medical treatment to address tissue damage and prevent infection.