The table below shows the average wages in Kwachas per week of a group of industrial workers during the year 1989-1996. The consumer price Index for the years with 1989 as base are shown below.
The table below shows the average wages in Kwachas per week of a group of industrial workers during the year 1989-1996. The consumer price Index for the years with 1989 as base are shown below.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
- The table below shows the average wages in Kwachas per week of a group of industrial workers during the year 1989-1996. The
consumer price Index for the years with 1989 as base are shown below.
Year Average wage of workers (K) Consumer Price Index
|
Year |
Average wage of worker (K) |
Consumer price index |
|
1989 1990 1991 1992 1993 1994 1995 1996 |
119 133 144 157 175 184 189 194 |
100 107.6 106.6 107.6 116.2 118.9 119.8 120.2 |
- Determine the real wages of workers during the year 1989-1996 as compared with their wages in 1989.
- Determine the
purchasing power of a Kwacha for the year 1996 as compared to the year 1989. What is the significance of this result?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education