Question

A labor union wants the union​ members' real wages to go up by 3.5​% for the coming year. How much of an increase in wages should the union ask​ for, given that the inflation rate is expected to be 6.1​% for the coming​ year?

Answer 1

6.1%

Step-by-step explanation:

As per my knowledge, real wages and the inflation rate goes hand to hand, so if the inflation rate is expected to increase to 6.1% in the coming year, then I thing the labor union would also want the real wages to go up by 6.1% for the labor union members to offset the difference between the two and meet the demands for the members.

Thank you and Good luck.