QUESTION 3 You have been asked by Fair Work Australia to investigate a claim by workers in the health care sector that they are under increasing financial pressure due to falling wages. Employers argue that this is incorrect as wages have actually increased. Table 3. Annual wages in the health care sector Year Nominal wages ($) 2019 2020 2021 75,000 77,340 79,536 CPI 144.5 145.2 149.1 Using the information in Table 3. (a) calculate the inflation rate between 2019 and 2020; and 2020 and 2021. (b) calculate the change in real wages between 2020 and 2021. (c) Discuss if the claim by the health care workers that they are "under increasing financial pressure due to falling wages" is justified.
QUESTION 3 You have been asked by Fair Work Australia to investigate a claim by workers in the health care sector that they are under increasing financial pressure due to falling wages. Employers argue that this is incorrect as wages have actually increased. Table 3. Annual wages in the health care sector Year Nominal wages ($) 2019 2020 2021 75,000 77,340 79,536 CPI 144.5 145.2 149.1 Using the information in Table 3. (a) calculate the inflation rate between 2019 and 2020; and 2020 and 2021. (b) calculate the change in real wages between 2020 and 2021. (c) Discuss if the claim by the health care workers that they are "under increasing financial pressure due to falling wages" is justified.
Chapter1: Making Economics Decisions
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Transcribed Image Text:QUESTION 3
You have been asked by Fair Work Australia to investigate a claim by workers in the health
care sector that they are under increasing financial pressure due to falling wages. Employers
argue that this is incorrect as wages have actually increased.
Table 3. Annual wages in the health care sector
Year
Nominal wages ($)
2019
2020
2021
75,000
77,340
79,536
CPI
144.5
145.2
149.1
Using the information in Table 3.
(a) calculate the inflation rate between 2019 and 2020; and 2020 and 2021.
(b) calculate the change in real wages between 2020 and 2021.
(c) Discuss if the claim by the health care workers that they are "under increasing financial
pressure due to falling wages" is justified.
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