Suppose Billy started working at a graphic design firm in 2014 at a nominal wage of $16 per hour. In that year, the CPI was 172. Billy was guaranteed a cost of living adjustment of $2 every two years. His nominal wage will increase $2/hour every two years. Fill in the table to show the change in his real wage. Round to two decimal places.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Suppose Billy started working at a graphic design firm in 2014 at a nominal wage of $16 per hour. In that year, the CPI was 172. Billy was guaranteed a cost of living adjustment of $2 every two years. His nominal wage will increase $2/hour every two years.

Fill in the table to show the change in his real wage.

Round to two decimal places.

Year
2014
2016
2018
2020
Measuring purchasing power
CPI
Nominal Wage
$16
18
20
22
172
198
223
248
Real Wage
Transcribed Image Text:Year 2014 2016 2018 2020 Measuring purchasing power CPI Nominal Wage $16 18 20 22 172 198 223 248 Real Wage
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