The federal minimum wage in 1988 was $3.35.  The value of the CPI in 1988 was 118.3.  The value of the CPI in 2018 was 251.107.  The federal minimum wage in 2018 was $7.25.  Round your answers to two decimal places.The real value of the minimum wage in 1988 measured in base year dollars was $  . The real value of the minimum wage in 1988 measured in 2018 dollars was $  . Minimum wage workers were better off in 1988 than they were in 2018.  Enter T for true or F for false.

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Asked Nov 7, 2019
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The federal minimum wage in 1988 was $3.35.  The value of the CPI in 1988 was 118.3.  The value of the CPI in 2018 was 251.107.  The federal minimum wage in 2018 was $7.25.  Round your answers to two decimal places.

The real value of the minimum wage in 1988 measured in base year dollars was $  . 

The real value of the minimum wage in 1988 measured in 2018 dollars was $  . 

Minimum wage workers were better off in 1988 than they were in 2018.  Enter T for true or F for false.  

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Expert Answer

Step 1

The table shows the CPI and minimum wage in1998 and 2018:

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Min Wage (S) CPI (S) Year 1988 3.35 118.3 7.25 2018 251.107

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Step 2

The real value of the minimum wage in 1988 measured in base year dollars was $ =  Min wage * CPI1998 / CPI base year (1998)

= 3.35 * 118.3/ 118.3 = $3.35

Step 3

The real value of the minimum wage in 1988 measured in 2018 dollars was = Min wage * CPI1...

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