The local gas station agreed to pay its workers $6 an hour in 2018 and $9 an hour in 2019. The GDP price index was 252 in 2018 and 257 in 2019. Calculate the real wage rate in each year. Did these workers really get a pay raise between 2018 and 2019? >>> Answer to 2 decimal places. The real wage rate in 2018 was $ ___ . The real wage rate in 2019 was $ ____ .
The local gas station agreed to pay its workers $6 an hour in 2018 and $9 an hour in 2019. The GDP price index was 252 in 2018 and 257 in 2019. Calculate the real wage rate in each year. Did these workers really get a pay raise between 2018 and 2019? >>> Answer to 2 decimal places. The real wage rate in 2018 was $ ___ . The real wage rate in 2019 was $ ____ .
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The local gas station agreed to pay its workers $6 an hour in 2018 and $9 an hour in 2019. The GDP
The real wage rate in 2018 was $ ___
.
The real wage rate in 2019 was $ ____
.
Expert Solution
Step 1
Real wage rate is the wage rate adjusted for price changes. It is the real purchasing power of the wage rate.
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