Question

Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. During this last year, overall prices in the economy have increased by 4%. Given this information, Eli's real wage has: a stayed constant. b increased by 2%. c increased by 10%. d decreased by 4%. e increased by 6%.

Answer 1

b increased by 2%.

Step-by-step explanation:

Increase in real wage = 6% - 4% = 2%