Essay
To calculate the real wage rate, we divide the nominal wage rate by the price index. Suppose the wage rate rose from $10 per hour in 1998 to $18 per hour in 2010 and the price level rose 50 percent during the same period. Calculate the real wage rate in 2010 using 1998 as the base year. Show your work.
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Using 1998 as the base year, the price i...View Answer
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