V2. If your nominal wage rises from $10 to $10.50 per hour and the CPI is 5%, what happens to your real wage? Illustrate mathematically. (Hint: Remember to add 1.0 to .05)
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V2. If your nominal wage rises from $10 to $10.50 per hour and the
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- 1) Answer the Questions below a) Your father tells you he earned $1.50 per hour when he was 16 in 1969; you made $6.00 per hour when you were 16 in 2006. Given that the CPI was 36.7 in 1969 and 201.6 in 2006, what is the 2006 current equivalent of your father’s (1969) hourly earnings when he was 16? b)Name ONE of the groups in society that is likely to be hurt by inflation.Suppose registered nurses in 2007 made an average hourly wage of $30.02. In 2011, suppose their hourly wage had risen to $33.21. Given that the CPI for 2007 was 207.3 and the 2011 CPI was 224.9, answer the following. (a) Give the real wages (in dollars) for registered nurses for 2007 and 2011 by deflating the hourly wage rates. (Round your answers to the nearest cent.) Deflated 2007 wages S Deflated 2011 wages S (b) What is the percentage change in the actual hourly wage for registered nurses from 2007 to 2011? (Enter your percentage as a positive value. Round your answer to the nearest integer.) The percentage increase in actual hourly wages is 96. (c) For registered nurses, what was the percentage change in real wages from 2007 to 2011? (Enter your percentage as a positive value. Round your answer to the nearest integer.) The percentage increase 96. in real hourly wages was13. In 2018 your annual salary was $54,370 per year and the CPI was 133.4. In 2022 your annual salary was $59,140 and the CPI was 151.2. a. What should your annual salary have been in 2022 if your 2018 annual salary increased at the rate of inflation from 2018 to 2022? Round your answer to the nearest dollar. b. By what percent was your actual 2022 salary above or below your inflation adjusted salary from part (a)? You must specifically state whether it was above or below the inflation adjusted salary. (answer as a % to 2 decimals)
- In 1984 Michael Jordan got a contract with Nike that was worth $500,000 a year, for the next 5 years (1984-1988, inclusive). How much the contract would worth, year-by-year, if we express it in 2018 dollars? Use the following data for this calculation: Year 1984 1985 1986 1987 1988 2018 CPI 103.9 107.6 109.6 113.6 118.3 251.63113. In 2018 your annual salary was $54,370 per year and the CPI was 133.4. In 2022 your annual salary was $59,140 and the CPI was 151.2. a. What should your annual salary have been in 2022 if your 2018 annual salary increased at the rate of inflation from 2018 to 2022? Round your answer to the nearest dollar. b. By what percent was your actual 2022 salary above or below your inflation adjusted salary from part (a)? You must specifically state whether it was above or below the inflation adjusted salary. (answer as a % to 2 decimals)Assume the CPI was 100.0 in 2002 and 125.2 in 2014. Jan’s wage at ABC Innovation was $60,000 in 2002 and had increased to $70,000 by 2014. After adjusting for inflation, what was Jan’s “real” wage in 2014 relative to what she was earning in 2002?
- . Suppose that a typical doctor earned $41,000 in 1978. In addition, you know that in 1990 atypical doctor earns $76,000. Finally, you also know that the CPI in 1978 is 210 and in 1990 is230.Given this information, a doctor's 1978 salary in 1990 dollars is $Michael Jordan Earned $30,100,000 playing for the Chicago Bulls in 1997. In 1997 the CPI was equal to 1.60. In 2020 LeBron James earned $37,400,000 playing for the Los Angeles Lakers. The CPI in 2020 is equal to 2.58. Calculate the real wage for Micheal Jordan in 1997 and Lebron James in 2020. Please enter your answers as numeric answers rounded to the nearest dollar with no decimals (ie. 15,553,342 or $10,432,675 not $15,553,341.73 or $10,432,675.2). Because these will be large numbers it is a good idea to use commas to separate millions, thousands, and hundreds. What was the real wage for Michael Jordan in 1997? What is the real wage for LeBron James in 2020?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? 4.35 QUESTION 7 Many people have proposed raising the minimum wage in increments so that it is $15 by 2024. Some people say that this $15 minimum wage would restore the purchasing power that the minimum wage used to have. Others say it would make the minimum wage higher, in real terms, that it has ever been before. What is the best evaluation of these claims? O the $15 minimum wage would have more purchasing power than any other year in the table O the $15 minimum wage is lower, in real terms, than most of the other years in the table O the $15 minimum wage would be the second highest in real terms (1968 is the highest) O there isn't enough…
- 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?Consider the simple economy that produces only three products. Use the information in the following table to calculate the (annual rate of) inflation for 2020 as measured by the consumer price index (CPI) Product Haircuts Hamburgers Movies BASE YEAR (2010) Price $10.00 2.00 15.00 Quantity 1 8 7 2019 Price $11.00 2.45 15.00 2020 Price $16.20 2.40 14.00 Using the information in the table, the CPI for 2019, with 2010 as the base year, is (Enter your response rounded to one decimal place.) The inflation rate for 2020 as measured by the consumer price index (CPI) is%. (Enter your response rounded to two decimal places) 4