Convert the nominal wage rates in the following table to real wage rates. The formula is Real = (Nominal/Price Index) x 100.  In the table below, the CPI or Consumer Price Index is the Price Index to use in the formula.  When you are converting a nominal number into a real number, getting rid of the effects of inflation, your resulting real number should be in the same units as the original nominal number.  It should also be in the same general magnitude, unless you are going back hundreds of years of looking at a country that has experienced unusually high rates of inflation.  In other words, when you convert the nominal wage rate of $7.25 into a real wage rate, you should come up with something close to $7.25, such as $4.04 or $9.56.  If you get an answer of $.04, then you know you made a mistake.     1976 1981 1989 1997 2006 2010 Nominal Minimum Wage $2.30 $3.35 $3.35 $5.15 $5.15 $7.25 CPI 56.9 90.9 124.0 160.5 201.6 219.2 Real Minimum Wage

Assume the CPI for 2015 and 2016 were 238 and 243 respectively. What was the inflation rate between those two years?

Question The CPI in 2000 for a basket of goods was CP 2000 = 133.2 The CPI in 2010 for the same basket of goods was CP/2010=121.8 What was the inflation rate in 2010? Round your answer to the nearest hundredth of a percent. Do NOT round until you have calculated the final answer. Provide your answer below:

The average income in 2023 is $75,000. The CPI in 2023 is 300 and the CPI in 1938 was 14. Based on this, the value of the 2023 average income in 1938 dollars is, Group of answer choices $250 $1,607,143 $21.43 $3,500

Which of the following was a way for the Bureau of Labor Statistics to reduce the quality/new good bias in its calculation of the CPI? Remove energy and food prices. Allow for some substitution amongst products. Update the list of products included in the CPI more often and rapidly. Automatically reduce the inflation by 0.5% to account for quality/new good bias.

Assume that a market basket necessary for consumption by a typical household in the economy consists of 300 sandwiches and 3 iPads. In year 2017 the price for one sandwich was $4, and the price of one iPad was $150. In year 2018, the price for one sandwich was $5, and the price of one iPad was $200. Assume that for our analysis we consider year 2017 as the base year. What is the rate of inflation from year 2017 to year 2018? a) 127.27% b) 27.27% c) 20% d) 75%

In 1970 a movie ticket cost US$2.00. Today, a movie tickets costs NZ$15.00 You also have the following data SUS/$NZ CPI 1970 2022 1.10 65 0.60 1122 What is the percentage change in the nominal value of a movie ticket? (Enter the numerical value only - do not include the "%" symbol)

The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each year, using the first year as the base year. Fill in the blanks in the table. Then calculate the annual inflation rate for each year (not including the base year). Instructions: Round your answers to 2 decimal places. Nominal Wage ($) Real Wage ($) Inflation Rate (%) Year Price Level 1 7.00 140 5.00 2. 9.00 7.00 150.00 3 11 160.00 7.50

because most businesses do not experience inflation as reflected by the market basket used to measure the CPI, a different index is used for provider of goods and services. which price index generally provides a better measurement of the inflation effects for particular business or for the purchase of particular equipment than the CPI? A) Business B) distributor C) manufacturer D) producer E) provider F) purchaser G) retail H) seller I) supplier J) vendor K) none of these

Suppose, in the base year, a typical market basket purchased by an urban family costs $250.  In Year 1, the same market basket cost $950.  What is the consumer price index (CPI) for Year 1? If the same market basket costs $1000 in Year 2, what is the CPI for Year 2? What was the Year 2 rate of inflation?