Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

At the beginning of 2009, a worker received $100 a week. During 2009, the Retail Price Index (RPI) increased by 4 % and his average wage increased by 7 %. In 2010, the RPI decreased by 3 % and his wage decreased by 2 %. What happened to his real wage from the start of 2009 to 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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