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The Consumer Price Index Is 132 in Year 1 and 125

Question 37

Multiple Choice

The consumer price index is 132 in Year 1 and 125 in Year 2. The nominal wage rate is $31 in Year 1 and $30 in Year 2. What is the approximate percentage change in the real wage rate from Year 1 to Year 2?


A) -5.3 percent
B) 6 percent
C) -3.2 percent
D) 2.1 percent

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