Year Nominal Wage (W) Price Level (P) Real Wage (w) 2018 60 50 2019 4500 75 2020 6000 60 a. When do we observe the lowest growth rate in nominal wages? b. Is the real wage in 2019 different than the real wage in 2020? c. What is the inflation rate in 2020?
Year Nominal Wage (W) Price Level (P) Real Wage (w) 2018 60 50 2019 4500 75 2020 6000 60 a. When do we observe the lowest growth rate in nominal wages? b. Is the real wage in 2019 different than the real wage in 2020? c. What is the inflation rate in 2020?
Chapter1: Making Economics Decisions
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Transcribed Image Text:Year
Nominal Wage (W)
Price Level (P)
Real Wage (w)
2018
60
50
2019
4500
75
2020
6000
60
a. When do we observe the lowest growth rate in nominal wages?
b. Is the real wage in 2019 different than the real wage in 2020?
c. What is the inflation rate in 2020?
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