Business, 02.03.2020 19:32, ausemkattom3034
Mark has a two-year wage contract with his employer. Mark's wage contract specifies a $50,000 salary for the first year, and specifies a salary increase equal to the percentage increase in the CPI during the second year. The increase in the CPI during the year was 4.0%. If the CPI overstates inflation by 1.0% (that is, the actual price increase was 3% and not 4%), at the end of the first year Mark's salary increased by $ more than it would have without the upward bias.
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Mark has a two-year wage contract with his employer. Mark's wage contract specifies a $50,000 salary...
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