Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

At the beginning of 2009, a worker was paid US$ 100 each week. Over 2009, the Retail Price Index (RPI) increased by 4% and his average pay increased by 7%. In 2010, the RPI decreased by 3% and his pay decreased by 2%. What happened to his real wage between the start of 2009 and the end of 2010?

  • AIt fell by less than 5%.
  • BIt fell by more than 5%.
  • CIt rose by less than 5%.
  • DIt rose by more than 5%.

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