Given the wage in dollar per day and the CPI for years 1 and 2 how do you calculate the nominal % increase in wage and the real % increase in wage?

I am not sure what to do for this or what the formula is if any. Thank you for your help.

To calculate the nominal percentage increase in wage, you will need the wage in dollars per day for both years 1 and 2. The formula for nominal percentage increase is:

Nominal % Increase in Wage = ((Wage in Year 2 - Wage in Year 1) / Wage in Year 1) * 100

This formula will give you the percentage increase in wage without taking inflation into account.

To calculate the real percentage increase in wage, you need to consider the Consumer Price Index (CPI) for both years 1 and 2. The CPI measures the average change in prices of goods and services over time. The formula for real percentage increase is:

Real % Increase in Wage = ((((Wage in Year 2 / CPI in Year 2) - (Wage in Year 1 / CPI in Year 1)) / (Wage in Year 1 / CPI in Year 1)) * 100

This formula adjusts for inflation by taking into account the change in prices reflected in the CPI.

To calculate the nominal and real percentage increases in wage, you will need the wage in dollars per day for both years 1 and 2, as well as the CPI for both years. Plug the values into the respective formulas to get the answers.