Lorrie will receive a nominal wage increase of 25% this year. If the inflation rate turns...
Lorrie will receive a nominal wage increase of 25% this year. If the inflation rate turns out to be 5% this year, her real wage will increase by approximately how many percents?
Homework Answers
Ans) real wage will increase by approximately 20%
percentage change in Real wage = percentage change in nominal wage - inflation rate
Percentage change in real wage = 25 - 5 = 20
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