#Question 2 explain with deatils 2. A dozen (12) eggs cost $0.90 in January 1980 and $2.50 in January 2020. The average wage for production workers was $7.50 per hour in January 1980 and $21.50 in January 2020. a) Calculate the price index for a dozen eggs in both years, using 1980 as the base year. Hint: Assume the “basket” only includes a dozen eggs. b) Calculate the inflation rate for eggs between 1980 and 2020. c) Calculate the price index for the average wage for production workers in both years, using 1980 as the base year. Hint: Assume the “basket” only includes the average wage.
#Question 2 explain with deatils
2. A dozen (12) eggs cost $0.90 in January 1980 and $2.50 in January 2020. The average wage for production workers was $7.50 per hour in January 1980 and $21.50 in January 2020.
a) Calculate the price index for a dozen eggs in both years, using 1980 as the base year. Hint: Assume the “basket” only includes a dozen eggs.
b) Calculate the inflation rate for eggs between 1980 and 2020.
c) Calculate the price index for the average wage for production workers in both years, using 1980 as the base year. Hint: Assume the “basket” only includes the average wage.
d) Calculate the inflation rate for the average wage between 1980 and 2020.
e) For each year, how many minutes did a worker have to work to earn enough money to buy a dozen eggs?
f) Based on your previous calculations, did the
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