In 2015, the minimum wage was 1000 TL which increased by 30% in 2016, 8% in 2017 and 14.2% in 2018. The inflation rate was 8.81% in 2015, 8.53% in 2016, and 11.97% in 2017. As you know, the inflation rate for 2018 is announced for the first 10 months.

a-Prepare a base Consumer Price Index below (2015=100). Calculate real wages for 2016 and 2017. (5 points)

b-How much has the real wage increased/decreased from 2015 to 2017? (5 points)

c-The inflation rate for the first 10 months of 2018 is calculated as 22.56%. What is the real wage at the end of October 2018 with 2015 constant prices? (5 points)

d-What would the average inflation rate be for the last two months of 2018 to keep real wage at 1050 TL with 2015 constant prices?

Answer rating: 100% (QA)

Calculating Real Wages from Minimum Wage in Turkey 20152018 a Base Consumer Price Index C... View the full answer