The table below shows the annual change in the average nominal wage and inflation rate since 2008. a. Compute the percentage change in real income for each year shown in the table. Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign. Percentage Changes in Nominal Income and Prices

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
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Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
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The table below shows the annual change in the average nominal wage and inflation rate since 2008.
a. Compute the percentage change in real income for each year shown in the table.
Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a
negative number, include a minus sign.
Percentage Changes in Nominal Income and Prices
Year
2008
2009
2010
2011
2012
2013
Annual
Inflation
Rate
(percent)
3.92%
-0.36
1.66
3.24
2.11
1.48
Annual
Nominal Wage
Growth
(percent)
0.34%
-1.24
-0.76
1.4
2.76
2.28
Annual Real Wage
Growth (percent)
(0.39) x %
(0.88) ♥
2.42 x
9.87 x
b. Of the years listed above, the paycheck of the average worker declined in 2
c. Of the years listed above, the purchasing power of the average worker declined in
of the six years.
4 of the six years.
d. The average real income of households can increase whether the nominal wage increases or decreases
Transcribed Image Text:The table below shows the annual change in the average nominal wage and inflation rate since 2008. a. Compute the percentage change in real income for each year shown in the table. Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign. Percentage Changes in Nominal Income and Prices Year 2008 2009 2010 2011 2012 2013 Annual Inflation Rate (percent) 3.92% -0.36 1.66 3.24 2.11 1.48 Annual Nominal Wage Growth (percent) 0.34% -1.24 -0.76 1.4 2.76 2.28 Annual Real Wage Growth (percent) (0.39) x % (0.88) ♥ 2.42 x 9.87 x b. Of the years listed above, the paycheck of the average worker declined in 2 c. Of the years listed above, the purchasing power of the average worker declined in of the six years. 4 of the six years. d. The average real income of households can increase whether the nominal wage increases or decreases
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