Consumer Price IndexSETTINGS196030028026024022020018016014012010080604020Price Then ($)Price Now ($)GRAPH1960Year1965 1970 1975Show Transcribed Text10.0010.0019841980Reset20161982-1984 = 100.0019841985 1990PRICE CALCULATIONSCPI = 105.301984Price Then$10.001995 2000Price Now$4.39(CPI data not seasonally adjusted. Source: BLS)$22.79O No, because the real value of her hourly wage has stayed the same.O No, because the real value of her hourly wage has fallen from $27.81 to $25.11.O Yes, because the real value of her hourly wage has risen from $25.11 to $27.81.O Yes, because she is earning more dollars per hour.$10.00Year2005 2010 2015 2020a) How much would a worker have to be paid per hour in 2016 to keep her real wage the same as in 1980 if she earned $10 per hourin 1980? Instructions: Round your answer to two decimal places. $b) A worker earned $10 a hour in 1980 and $14 an hour in 1990. Using the interactive tool to convert each of the wage rates to2016 dollars, did this worker experience a rise in her real wage?

CPI in 1980= 240Wage rate in year 1980= 10 per hour

Consumer Price Index SETTINGS 1960 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 Price Then ($) Price Now ($) 1960 Year GRAPH 10.00 Show Transcribed Text 10.00 1984 1965 1970 1975 1980 Reset 2016 1982-1984 = 100.00 1984 1985 1990 c PRICE CALCULATIONS CPI = 105.30 1984 Price Then $10.00 Price Now $22.79 $4.39 $10.00 (CPI data not seasonally adjusted. Source: BLS) Year 1995 2000 2005 2010 2015 2020 a) How much would a worker have to be paid per hour in 2016 to keep her real wage the same as in 1980 if she earned $10 per hour in 1980? Instructions: Round your answer to two decimal places. $[ b) A worker earned $10 a hour in 1980 and $14 an hour in 1990. Using the interactive tool to convert each of the wage rates to 2016 dollars, did this worker experience a rise in her real wage?

Consumer Price Index SETTINGS 1960 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 Price Then ($) Price Now ($) 1960 Year GRAPH 10.00 Show Transcribed Text 10.00 1984 1965 1970 1975 1980 Reset 2016 1982-1984 = 100.00 1984 1985 1990 c PRICE CALCULATIONS CPI = 105.30 1984 Price Then $10.00 Price Now $22.79 $4.39 $10.00 (CPI data not seasonally adjusted. Source: BLS) Year 1995 2000 2005 2010 2015 2020 a) How much would a worker have to be paid per hour in 2016 to keep her real wage the same as in 1980 if she earned $10 per hour in 1980? Instructions: Round your answer to two decimal places. $[ b) A worker earned $10 a hour in 1980 and $14 an hour in 1990. Using the interactive tool to convert each of the wage rates to 2016 dollars, did this worker experience a rise in her real wage?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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