Refer to the Information Provided in Table 16

question 148

Multiple Choice

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1

-Refer to Table 16.1.What is the real wage rate in 2013 using 2011 as the base year?

• A)$6.84
• B)$8.86
• C)$9.29
• D)$13.30

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Definitions:

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.

MPC

refers to the Marginal Propensity to Consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

The cash flow available to households for the purposes of spending and saving after income taxes.