Suppose General Electric paid its line workers $10 per hour in 2017 when the Consumer Price Index was 100. Suppose that deflatio occurred and the aggregate price level fell to 80 in the 2018. Instructions: Round your answers to two decimal places. a. GE needed to pay its workers $ b. GE needed to pay its workers $ c. If GE kept the wage fixed at $10 per hour in 2018, in real terms, its workers got a [ in 2018 in order to keep the real wage fixed at $10. in 2018 if it wanted to increase the real wage by 10 percent. % increase in real wages.
Suppose General Electric paid its line workers $10 per hour in 2017 when the Consumer Price Index was 100. Suppose that deflatio occurred and the aggregate price level fell to 80 in the 2018. Instructions: Round your answers to two decimal places. a. GE needed to pay its workers $ b. GE needed to pay its workers $ c. If GE kept the wage fixed at $10 per hour in 2018, in real terms, its workers got a [ in 2018 in order to keep the real wage fixed at $10. in 2018 if it wanted to increase the real wage by 10 percent. % increase in real wages.
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 7E
Related questions
Question
![Suppose General Electric paid its line workers $10 per hour in 2017 when the Consumer Price Index was 100. Suppose that deflation
occurred and the aggregate price level fell to 80 in the 2018.
Instructions: Round your answers to two decimal places.
a. GE needed to pay its workers $
b. GE needed to pay its workers $
c. If GE kept the wage fixed at $10 per hour in 2018, in real terms, its workers got a
in 2018 in order to keep the real wage fixed at $10.
in 2018 if it wanted to increase the real wage by 10 percent.
% increase in real wages.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ee72f6f-029e-42f4-b1c3-1cb907bd524b%2Fa5887082-293f-414f-8b49-38c319e4b0ea%2F5epyty_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose General Electric paid its line workers $10 per hour in 2017 when the Consumer Price Index was 100. Suppose that deflation
occurred and the aggregate price level fell to 80 in the 2018.
Instructions: Round your answers to two decimal places.
a. GE needed to pay its workers $
b. GE needed to pay its workers $
c. If GE kept the wage fixed at $10 per hour in 2018, in real terms, its workers got a
in 2018 in order to keep the real wage fixed at $10.
in 2018 if it wanted to increase the real wage by 10 percent.
% increase in real wages.
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