Nominal and real wages, CPI, and inflation The following table shows the nominal hourly earnings for workers in the private sector from 1980 to 2019. Average hourly earnings 1980 1990 2009 2019 $7.5 $8.5 $20.0 $30. Consumer Price Index (CPI) of 1970 as a base 80.4 120.0 210.5 400 Using the information presented in the table, answer the following questions: 1. Calculate the real wage for every year. Give the economic interpretation for each ion value. 2. What is the change rate of earnings between 1980-1990, 1990-2009, and 2009-2019. 3. If the CPI in 2010 was 215, what was that year's inflation rate? 4. Using the values calculated in (1), explain the nominal and real wage variation across time. Are people richer? II. Supply and demand of labour W 10 2 Ls Ld L The previous graph shows the MARKET supply and demand of labour. The equilibrium wage and labour are $5 and 5, respectively. With this information, answer the following questions: 5. Find the supply and demand equations. 6. Determine the excess labour supply if the wage is 6. Discuss the implications of a $6 wage in this market. 7. Determine the excess labour demand if the wage is 3. Discuss the implications of a $3 wage in this market. 8. Explain what will happen with the workers and employer surplus if the wage decreases to 2. 9. Explain what will happen with the workers and employer surplus if the wage increases to 10. 10. Determine the worker and employer surplus in the market clearing point. 11. What would the substitution effects be in the short run in this market if the output demand increases? 12. Show graphically what would happen with the equilibrium wage and equilibrium employment if the output demand increases.

Nominal and real wages, CPI, and inflation The following table shows the nominal hourly earnings for workers in the private sector from 1980 to 2019. Average hourly earnings 1980 1990 2009 2019 $7.5 $8.5 $20.0 $30. Consumer Price Index (CPI) of 1970 as a base 80.4 120.0 210.5 400 Using the information presented in the table, answer the following questions: 1. Calculate the real wage for every year. Give the economic interpretation for each ion value. 2. What is the change rate of earnings between 1980-1990, 1990-2009, and 2009-2019. 3. If the CPI in 2010 was 215, what was that year's inflation rate? 4. Using the values calculated in (1), explain the nominal and real wage variation across time. Are people richer? II. Supply and demand of labour W 10 2 Ls Ld L The previous graph shows the MARKET supply and demand of labour. The equilibrium wage and labour are $5 and 5, respectively. With this information, answer the following questions: 5. Find the supply and demand equations. 6.…

Congratulations! Your boss has given you a raise.   ​However, you want to know whether your purchasing power has ​ increased, since inflation is also rising. The table below gives you data for wages and the Consumer Price Index​ (CPI) for the last two years. Wage​ ($/day) CPI Year 1 ​$ 2000 CPI 120 Year 2 ​$2200 CPI 129.6 The nominal percentage increase in your wage is    enter your response here​%. ​(Round your answer to one decimal​ place.)   Part 2 The real percentage increase in your wage is    enter your response here​%. ​(Round your answer to one decimal​ place.)

Back to Assignment Attempts Average / 1 2. Calculating percentage change in prices This table indicates the historical level of the Consumer Price Index (CPI) for the United States for 2016, 2017, and 2018. Complete the table by computing the inflation rate for 2017 and 2018. Year 2016 CPI 240.0 Percentage change in prices 2017 245.1 2018 251.1 acer Grade It Now Save & Continue Continue without saving

Month CPI January 281.93 February 284.18 March 287.71 April 288.66 The minimum wage was $1.60 in 1968. The CPI in December of 1968 was 35.6 and we have the data above for CPI values in 2022.  What is the value of the 1968 minimum wage in April 2022 terms? Round your answer to two digits after the decimal without the dollar sign. Make sure you are using the correct base period.

The table below shows six years of hypothetical CPI values for the United States. Using the information in the table, compute the annual inflation rate. Instructions: Round your answers to two decimal places. CPI Values and Inflation Year 2009 2010 2011 2012 2013 2014 CPI 212.35 216.72 223.92 229.09 233.2 240.01 Inflation Rate (percent) %

I. Nominal and real wages, CPI, and inflation The following table shows the nominal hourly earnings for workers in the private sector from 1980 to 2019. 1980 1990 2009 2019 Average hourly earnings $7.5 $8.5 $20.0 $30. Consumer Price Index (CPI) of 1970 as a base 80.4 120.0 210.5 400 1. 2. 3. 4. Using the information presented in the table, answer the following questions: (1.5 points) Calculate the real wage for every year. Give the economic interpretation for each value. (1 point) What is the change rate of earnings between 1980-1990, 1990-2009, and 2009-2019. (0.5 points) If the CPI in 2010 was 215, what was that year's inflation rate? (1 point) Using the values calculated in (1), explain the nominal and real wage variation across time. Are people richer? II. Supply and demand of labour W 10 5. 6. 7. 8. 9. 10. 11. 12. The previous graph shows the MARKET supply and demand of labour. The equilibrium wage and labour are $5 and 5, respectively. With this information, answer the following…