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20 July, 19:32

Recently the government increased the minimum wage from $4,280 per week to $5,300 per week. The inflation rate during the same period was 9%. What is the impact on real wages?

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  1. 20 July, 19:51
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    4280 x 1.09 = real wage if constant from period x to period y. Let's call

    this number Z.

    Find the relationship between Z and the government's wage increase. If 5300 / Z 1) then the effect is positive for the workers.
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