Question

In​ 2012, the nominal wage rate for unionized carpenters was​ $37.50 and the CPI was 204. Calculate the real wage rate for this group of workers.

Answer 1

$18.38

Step-by-step explanation:

The nominal wage rate for unionized carpenters in 2012 was $37.50

The CPI was 204

Therefore, the real wage rate can be calculated as follows

Real wage rate= Nominal wage rate/CPI × 100

= $37.50/204 × 100

= 0.1838 × 100

= $18.38

Hence the real wage rate for unionized carpenters is $18.38