Sam Steward is a freelance Web page designer. Listed are his yearly wages between 2015 and 2018. Also included is an industry index for Web page designers that reports the rate of wage inflation in the industry. This index has a base period of 2010.
Sam Steward is a freelance Web page designer. Listed are his yearly wages between 2015 and 2018. Also included is an industry index for Web page designers that reports the rate of wage inflation in the industry. This index has a base period of 2010.
Chapter7: Inflation
Section: Chapter Questions
Problem 4SQ
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![Sam Steward is a freelance Web page designer. Listed are his yearly wages between 2015 and 2018. Also included is an industry
index for Web page designers that reports the rate of wage inflation in the industry. This index has a base period of 2010.
ITT
Year
Wage ($000)
Index (2010 = 100)
2015
134.8
160.6
2016
145.2
173.6
2017
156.6
187.9
2018
168.8
203.3
E Click here for the Excel Data File
Compute Sam's real income for the selected years during the 4-year period. (Use 2015 as the base period. Round your final answers
to 2 decimal places.)
Year
Index (Base 2010)
Index (Base 2015)
Wage
Real Income
2015
160.6
134.8
2016
173.6
145.2
2017
187.9
156.6
2018
203.3
168.8
Did his wages keep up with inflation, or did he lose ground? (Round your final answers for real wages to the nearest whole dollar
and round the final percent value to 2 decimal places.)
Sam's real wages decreased from
in 2015 to
in 2018 measured in 2010 dollars.
This is a decrease in the real wage of
% over the six years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5541ef45-4397-4265-b662-29882e411e63%2Fb1a50f6c-d5cb-479c-84aa-6b9034100c7d%2Fb4myuvb_processed.png&w=3840&q=75)
Transcribed Image Text:Sam Steward is a freelance Web page designer. Listed are his yearly wages between 2015 and 2018. Also included is an industry
index for Web page designers that reports the rate of wage inflation in the industry. This index has a base period of 2010.
ITT
Year
Wage ($000)
Index (2010 = 100)
2015
134.8
160.6
2016
145.2
173.6
2017
156.6
187.9
2018
168.8
203.3
E Click here for the Excel Data File
Compute Sam's real income for the selected years during the 4-year period. (Use 2015 as the base period. Round your final answers
to 2 decimal places.)
Year
Index (Base 2010)
Index (Base 2015)
Wage
Real Income
2015
160.6
134.8
2016
173.6
145.2
2017
187.9
156.6
2018
203.3
168.8
Did his wages keep up with inflation, or did he lose ground? (Round your final answers for real wages to the nearest whole dollar
and round the final percent value to 2 decimal places.)
Sam's real wages decreased from
in 2015 to
in 2018 measured in 2010 dollars.
This is a decrease in the real wage of
% over the six years.
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