Define the nominal wage rate and the real wage rate. Can the nominal wage rate increase...
- Define the nominal wage rate and the real wage rate. Can the nominal wage rate increase faster than the real wage rate, if yes, then why? (3 points)
Homework Answers
The nominal wage rate is the wage rate measured in current dollars and the real wage rate is the wage rate measured in constant dollars. More generally, the nominal wage rate is the number of dollars received for an hour's work and the real wage rate is the number of goods and services that can be purchased with an hour's work.
Yes, the nominal wage rate increase faster than the real wage rate. The nominal wage rate increases faster than the real wage rate when prices are increasing, that is, when inflation occurs. So when inflation occurs in the economy the nominal wage rate increase faster than the real wage rate.
Add Answer to:
Define the nominal wage rate and the real wage rate. Can the
nominal wage rate increase...
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percent...
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased c. your real wage increase. If your real wage...
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?
Suppose your nominal wage fell and deflation occurred. Did your real wage increase or decrease?
Suppose your nominal wage fell and deflation occurred. Did your real wage increase or decrease?
Suppose your nominal wage fell and deflation occurred. Did your real wage increase or decrease?
Suppose your nominal wage fell and deflation occurred. Did your real wage increase or decrease?
If the real wage rate increases over time, this means that the A) nominal wage rate...
If the real wage rate increases over time, this means that the A) nominal wage rate Has increased over time B) buying power of an hours work has increased over time C) the CPI must have decreased over time D) inflation rate has increased over time E) Quantity of labor has increased over time
3. Convert the nominal wage rates in the following table to real wage rates. The formula...
3. Convert the nominal wage rates in the following table to real wage rates. The formula is Real (Nominal/Price Index) x 100, when you are converting a nominal number into a real number, getting rid of the effects of inflation, your resulting real number should be in the same units as the original nominal number. It should also be in the same general magnitude, unless you are going back hundreds of years of looking at a country that has experienced...
Define and provide examples of each of the following. Nominal vs. real wage Labour income vs....
Define and provide examples of each of the following. Nominal vs. real wage Labour income vs. supplementary labour income Gross National Product (GNP) vs. Labour’s share of GNP
Below is Jimmy’s hourly nominal wage in 2010. Find CPI and Jimmy’s real wage. Year Nominal...
Below is Jimmy’s hourly nominal wage in 2010. Find CPI and Jimmy’s real wage. Year Nominal Wage CPI Real Wage 2010 $30
problem 2 nominal vs real minimum wage PART II. PROBLEM: NOMINAL VS REAL (20 Marks) The...
problem 2 nominal vs real minimum wage
PART II. PROBLEM: NOMINAL VS REAL (20 Marks) The table below show the nominal minimum wage in BC for selected years and the corresponding consumer price index (CPI) for those years. Year Year Nominal Minimum Wage (5 per hour) Consumer Price Index (2014 = 100) Nominal Minimum Wage (5 per hour) Consumer Price Index (2014 - 100) 1976 1987 1990 1993 1995 1998 2000 3.00 4.00 5.00 6.00 6.50 26.2 57.8 65 9...
What would happen to Bolivia’s real exchange rate in each of the following situations? The Bolivian...
What would happen to Bolivia’s real exchange rate in each of the following situations? The Bolivian nominal exchange rate is unchanged. Prices rise faster in other countries than in Bolivi (3 points) The Bolivian nominal exchange rate increases. Prices rise faster in Bolivia than abroad. (3 points)
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased c. your real wage increase. If your real wage...
3. Convert the nominal wage rates in the following table to real wage rates. The formula is Real (Nominal/Price Index) x 100, when you are converting a nominal number into a real number, getting rid of the effects of inflation, your resulting real number should be in the same units as the original nominal number. It should also be in the same general magnitude, unless you are going back hundreds of years of looking at a country that has experienced...
problem 2 nominal vs real minimum wage
PART II. PROBLEM: NOMINAL VS REAL (20 Marks) The table below show the nominal minimum wage in BC for selected years and the corresponding consumer price index (CPI) for those years. Year Year Nominal Minimum Wage (5 per hour) Consumer Price Index (2014 = 100) Nominal Minimum Wage (5 per hour) Consumer Price Index (2014 - 100) 1976 1987 1990 1993 1995 1998 2000 3.00 4.00 5.00 6.00 6.50 26.2 57.8 65 9...
Most questions answered within 3 hours.
-
Explain traveling wave theory. Explain how the peaking of the
wave leads to action potentials and...
asked 6 minutes ago -
If you mixed 35.0 mLmL of 0.100 M Tris-HCl with 65.0
mLmL of 0.200 M Tris-base, what would...
asked 3 minutes ago -
Which force do you think wields a stronger influence over our
ethical behavior – our personal...
asked 8 minutes ago -
11.1 In the northeast
regions of the United States and in eastern Canada, many people
heat their...
asked 7 minutes ago -
What is the entropy change to the surroundings when 1 mol of ice
melts in someone's...
asked 9 minutes ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 14 minutes ago -
Pt1
An electrochemical cell is set up at 25°C based on the overall
reaction represented by...
asked 15 minutes ago -
Bruin, Inc., has identified the following two mutually
exclusive projects:
Year
Cash Flow (A)
Cash...
asked 17 minutes ago -
A mutual fund salesperson has arranged to call on four people
tomorrow. Based on past experience...
asked 20 minutes ago -
The decomposition of SO2Cl2 is first order
and has a rate constant of + 2.90 x...
asked 43 minutes ago -
A solid, frictionless cylindrical reel of mass M=5.00kg and
radius R=0.55m is used to draw water...
asked 1 hour ago -
The work done by the spring's restoring force
on the free end of a spring while...
asked 37 minutes ago