You are given the following data on hourly wage rates for the Canadian manufacturing sector and on the consumer price index (CPI): Year 1985 1990 1992 1995 2000 2003 Average hourly rate $11.59 $14.19 $15.38 $16.19 $18.29 $19.70 CPI 75.0 93.3 100.0 104.2 113.6 122.3 Construct the index of real hourly wages for the years given, starting with 1985 and ending with 2003. Use 1992 as the base year. What is the percentage change in the average hourly nominal wage between 1985 and 2003? What is the percentage change in the average hourly real wage?

You are given the following data on hourly wage rates for the Canadian manufacturing sector and on the consumer price index (CPI): Year 1985 1990 1992 1995 2000 2003 Average hourly rate $11.59 $14.19 $15.38 $16.19 $18.29 $19.70 CPI 75.0 93.3 100.0 104.2 113.6 122.3 Construct the index of real hourly wages for the years given, starting with 1985 and ending with 2003. Use 1992 as the base year. What is the percentage change in the average hourly nominal wage between 1985 and 2003? What is the percentage change in the average hourly real wage?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

You are given the following data on hourly wage rates for the Canadian manufacturing sector
and on the consumer price index (CPI):
Year
1985
1990
1992
1995
2000
2003
Average hourly rate
$11.59
$14.19
$15.38
$16.19
$18.29
$19.70
CPI
75.0
93.3
100.0
104.2
113.6
122.3
Construct the index of real hourly wages for the years given, starting with 1985 and ending with
2003. Use 1992 as the base year. What is the percentage change in the average hourly nominal
wage between 1985 and 2003? What is the percentage change in the average hourly real wage?

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