Thank you for the opportunity to help you with your question!
Real wage rate in a year=(nominal wage in a year/CPI in a year) * 100
In 1999=18/166 x 100=$10.84
In 2001=21/180 x 100=$11.67
Because the real wage rate in 2001 is more than he real wage rate in 1999, the workers did really get a raise between 1999 and 2001. Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 3rd, 2015
Are you studying on the go? Check out our FREE app and post questions on the fly!