Question
a) Assume that during the last year you have been earning 1000 per month. Inflation has been 2.5%. What are your nominal and your real
a) Assume that during the last year you have been earning 1000 per month. Inflation has been 2.5%. What are your nominal and your real wages?
b) Suppose expected inflation for next year is 2.5%. If you are currently earning 28,000 a year, what should your nominal wage be next year if you want to keep your real wage constant?
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
