The table below presents some data on the federal minimum wage and the CPI for several years. Fill in the column for “minimum wagein 2020 $s."YearMinimum wageCPIMinimum wage in 2020 $s1949$0.4023.81968$1.6034.81995$4.25152.42020$7.25259.12024 (proposed)$15306 (projected)What was the 1949 minimum wage equivalent to in 2020 $s?

Answered: The table below presents some data on…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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The table below presents some data on the federal minimum wage and the CPI for several years. Fill in the column for “minimum wage
in 2020 $s."
Year
Minimum wage
CPI
Minimum wage in 2020 $s
1949
$0.40
23.8
1968
$1.60
34.8
1995
$4.25
152.4
2020
$7.25
259.1
2024 (proposed)
$15
306 (projected)
What was the 1949 minimum wage equivalent to in 2020 $s?

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Step 1

In economics, the inflation rate shows the overall increase in the price level in the economy over a particular period of time. Inflation over time generally reduces the purchasing power of money.

The rate of inflation between any two particular time periods is calculated by using the value of CPI in those two years. In the field of macroeconomics, inflation is divided into two categories demand-pull inflation and cost-push inflation.

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