Tim Hortons paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year, deflation occurred and the aggregate price level fell to 90. Instructions: Round your answers to two decimal places. a. Tim Hortons must pay its workers $| |this year in order to keep the real wage fixed at $12. b. Tim Hortons must pay its workers $ |this year if it wants to increase the real wage by 12 percent. c. If Tim Hortons keeps the wage fixed at $12 per hour, in real terms, its workers get a % increase in wages.

Tim Hortons paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year, deflation occurred and the aggregate price level fell to 90. Instructions: Round your answers to two decimal places. a. Tim Hortons must pay its workers $| |this year in order to keep the real wage fixed at $12. b. Tim Hortons must pay its workers $ |this year if it wants to increase the real wage by 12 percent. c. If Tim Hortons keeps the wage fixed at $12 per hour, in real terms, its workers get a % increase in wages.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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