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General Electric paid its line workers $10 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 80.
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 $10.
b. GE must pay its workers $ this year if it wants to increase the real wage by 10 percent.
c. If GE keeps the wage fixed at $10 per hour, in real terms, its workers get a % increase in real wages
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