5 a) The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?b) Between 2015 and 2016, the CPI of a small nation rose from 182 to 185. If household incomes rose by 3% during that period, explain what happened to purchasing powerof household income between 2015 and 2016?c)Year Nominal Average Hourly Earning CPI (1982-1984-100)2014 $10201520161012100105110i) Looking at the table above, what is the approximate rate of growth of real average hourly earnings from 2014 to 2015? What does the rate of growth of real average hourlyearnings suggest about the purchasing power of households, has it risen or fallen during this period?ii) Calculate the rate of growth of real average hourly earnings from 2015 to 2016?I

A consumer price index is a price index, the price of a weighted average market basket of consumer…

The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,0 ) Between 2015 and 2016, the CPI of a small nation rose from 182 of household income between 2015 and 2016? =) Year Nominal Average Hourly Earning 2014 $10 2015 10 2016 12 CPI (1982-1984=100) 100 105 110 185. If household incomes rose by 3% during that period, explain what happened to purchas