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Question: paid its line workers 12 per hour last year when...

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paid its line workers $12 per hour last year when the Consumer Price Index was 100 Tim price level fell to 86 t Suppose over the past year, deflation occumed and the aggregate Instructions: Round your answers to two decimal places a. Tim Hortons must pay its workers s 1032 this year in order to keep the real wage fixed at $12 b. Tim Hortons must pay its workers C. If Tim Hortons keeps the wage fixed at $12 per hour, in real terms, its workers get a 1642% increase in wages 1104 this year if it wants to increase the real wage by 7 percent
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