When the consumer price index

Assignment Help Business Economics

Reference no: EM131004732

General Electric paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year that deflation occurred and the aggregate price level fell to 90. Instructions: Round your answers to two decimal places.

a. GE must pay its workers $ ? this year in order to keep the real wage fixed at $12.

b. GE must pay its workers $ ? this year if it wants to increase the real wage by 12 percent.

c. If GE keeps the wage fixed at $12 per hour, in real terms, its workers get a ? % increase in wages.

Reference no: EM131004732

Questions Cloud

Products through more than one channel of distribution : Choose a firm that sells their products through more than one channel of distribution. Identify the firm and products you have selected to discuss. There are many ways a firm could distribute its products. Different kinds of firms approach the manage..

Causes of the great depression to speculators-banking act : Discuss why most historians attribute the causes of the Great Depression to speculators, Wall Street, business people, and rich people. Explain why The Banking Act of 1934 (Glass-Steagall Act) was enacted, and describe the effects. Explain why FDR to..

Causes of the great depression according to powell : List three causes of the Great Depression according to Powell, including monetary actions by the Federal Reserve Bank of New York in 1927-1929, explained what caused bank failures during 1929-1933 and explain why the money supply contracted by one-th..

Time is worth : Your car gets 9.5L/100 km at 90 km per hour (kph) and 11.5 L/100 km at 110 kph. At what speed should you make an 800 km trip: a.) If gas cost $0.90 per litre and your time is worth $18/hour? b.) If gas costs $1.00 per litre and your time is worth $12..

When the consumer price index : General Electric paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year that deflation occurred and the aggregate price level fell to 90. Instructions: Round your answers to two decimal places. ..

Determine the price elasticity of demand : The demand for haddock has been estimated as: Determine the price elasticity of demand. Determine the income elasticity of demand. Suppose disposable income is expected to increase by 5% next year. Assuming all other factors remain constant, forecast..

Domestic product for the united states : For each of the following activities, please state "yes" if this activity should be included in the year 20016 Gross Domestic Product for the United States or "no" if this activity should not be included in the year 20016 Gross Domestic Product for t..

Determine the advertising elasticity of demand : General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shaped, sugar-coated breakfast cereal for children. The following (multiplicative exponential) demand function is being used: Determine the point price..

What is the value of government securities : Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by $2 million?

User Account

All Pages