Final answer:
The percentage change in real wage is calculated by adjusting the nominal wages for inflation using the Consumer Price Index, and then finding the percentage increase between the adjusted wages from 2007 to 2017.
Step-by-step explanation:
The student is asking about the percentage change in real wage between 2007 and 2017, taking into account the Consumer Price Index (CPI). To calculate this, we first need to adjust the nominal wages to real wages to account for inflation. We then find the percentage change over the 10-year period. The real wage is calculated by dividing the nominal wage by the CPI (then multiplied by 100 to keep the index consistent).
Real Wage 2007 = (Nominal Wage 2007 / CPI 2007) * 100 = ($12 / 175) * 100
Real Wage 2017 = (Nominal Wage 2017 / CPI 2017) * 100 = ($22 / 250) * 100
Then calculate the percentage change: [(Real Wage 2017 - Real Wage 2007) / Real Wage 2007] * 100
Percentage Change in Real Wage = [((($22 / 250) * 100) - (($12 / 175) * 100)) / (($12 / 175) * 100)] * 100
Conducting the actual calculations will provide the change in real wage expressed as a percentage.