Tim Hortons paid its line workers $10 per hour last year when the Consumer Price Index was 100. Suppose over the past year, deflation occurred and the aggregate price level fell to 90.

Instructions: Round your answers to two decimal places.

a. Tim Hortons must pay its workers $ this year in order to keep the real wage fixed at $10.

b. Tim Hortons must pay its workers $ this year if it wants to increase the real wage by 10 percent.

c. If Tim Hortons keeps the wage fixed at $10 per hour, in real terms, its workers get a % increase in wages.