Tim Hortons paid its line workers $12 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:...

Extracted text: Tim Hortons paid its line workers $12 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 $12. b. Tim Hortons must pay its workers $ |this year if it wants to increase the real wage by 12 percent. c. If Tim Hortons keeps the wage fixed at $12 per hour, in real terms, its workers get a % increase in wages.