MACROECONOMICS-W/MINDTAP
15th Edition
ISBN: 9781305361409
Author: Gwartney
Publisher: CENGAGE L
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Chapter 7, Problem 7CQ
To determine
Determine the real earning of private nonagricultural production.
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In 1984 when the CPI was 104.1 Amie made four dollars babysitting what would that be in today's CPI equals 263.2 dollars to two decimals
What would $30,000 earned in 1995 be equal to in 2011? The CPis for the two years are 152.4 and 223.47, respectively.
Suppose the nominal median household income for a family of four in the United States was $24,618.00 in 1985, $36,678.00 in 1995, $50,326.00 in 2005, and $53,276.00 in 2010.You will need to know that the CPI (multiplied by 100, 1982–1984 = 100) was 108.6 in 1985, 153.4 in 1995, 196.3 in 2005, and 219.1 in 2010.Instructions: Enter your responses rounded to two decimal places.
Year
Real Income
1985
$
1995
$
2005
$
2010
$
Between 1985 and 2005, the real median household income (Click to select) rose declined stayed constant .
Between 2005 and 2010, the real median household income (Click to select) .
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- Suppose the nominal median household income for a family of four in the United States was $24,618.00 in 1985, $36,678.00 in 1995, $50,326.00 in 2005, and $53,276.00 in 2010.You will need to know that the CPI (multiplied by 100, 1982–1984 = 100) was 108.6 in 1985, 153.4 in 1995, 196.3 in 2005, and 219.1 in 2010.Instructions: Enter your responses rounded to two decimal places. Year Real Income 1985 $ 1995 $ 2005 $ 2010 $ Between 1985 and 2005, the real median household income (Click to select) rose declined stayed constant . Between 2005 and 2010, the real median household income (Click to select) rose declined stayed constant . rev: 01_31_2019_QC_CS-155719arrow_forwardThe average hourly wage in 1975 was $6.50, and $17 in 2002. CPI stood at 42 in 1975 and the CPI base year is 2002. Calculate the rate of inflation between 1975 and 2002. What is the average hourly wage in 2002 in real terms (i.e. in terms of the 1975 average hourly wage)? In terms of living standards, is the worker better off in 1975 or 2002? Justify your answer.arrow_forwardAssume 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?arrow_forward
- 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?arrow_forwardMonth CPI January 281.93 February 284.18 March 287.71 April 288.66 The minimum wage was $1.60 in 1968. The CPI in December of 1968 was 35.6 and we have the data above for CPI values in 2022. What is the value of the 1968 minimum wage in April 2022 terms? Round your answer to two digits after the decimal without the dollar sign. Make sure you are using the correct base period.arrow_forwardIn June 1970, the national minimum wage in the US was $1.60 per hour and the value of the CPI was 0.388 (1983=1.0). The value of the CPI is currently 2.585. What would the minimum wage have to be currently to have the same purchasing power as it had in 1970?arrow_forward
- The Consumer Price Index in 1987 was 113.6 (1982 - 84 = 100), compared to 30.2 in 1962. Given that the price of a certain subcompact automobile was $9000 in 1987, and using the CPI as a deflator, what would have been the vehicle's equivalent price in 1962? $3187 $7739 $2393 $13,492arrow_forwardThe CPI in December of the year 2000 was equal to 174.6. In May of 2023, the most recent month available, the CPI was 304.2. If you made $35,000 in 2000, how much income would you have to make in March of 2023 to maintain the same purchasing power? Please show your work.arrow_forwardBelow are the values of the CPI for each year from 1992-1996. For each year, beginning with 1993, calculate the rate of inflation from the previous year. Year CPI 1992 1.40 1993 1.45 1994 1.48 1995 1.52 1996 1.57 Please enter your answers as percentages rounded to the nearest tenth of a percent (ie. if your answer in your calculator is 0.02644 enter your answer as 2.6 or 2.6% not 3%, 2.644, or 0.026). What is the inflation rate from 1992 - 1993? What is the inflation rate from 1993-1994? What is the inflation rate from 1994-1995? What is the inflation rate from 1995-1996?arrow_forward
- Which Professor Is Better Off? Suppose the starting salary for a new assistant economics professor was $20,000 in 1976 and $85,000 in 2014. The value of the CPI for 2014 was 236.7, compared to 56.9 in 1976. A newly-hired professor earned more in real terms in ( 1976 or 2014), with a real salary of $___ enter your response here. (Enter your response rounded to the nearest integer.)arrow_forwardSuppose the revenue for a certain company for the years 2010–2014 is shown in the following table. Year Revenue($ billions) CPI 2010 29.4 218.1 2011 38.0 224.9 2012 50.1 229.6 2013 59.9 233.0 2014 66.7 236.7 Deflate the revenue in billions of dollars based on the CPI (1982–1984 base period). (Round your answers to one decimal place.) Deflated 2010 revenue$____ billion Deflated 2011 revenue$____ billion Deflated 2012 revenue$____ billion Deflated 2013 revenue$ ____ billion Deflated 2014 revenue$ _____ billionarrow_forwardBelow is a list of annual CPI values for the years 2000-2003. Using these values please calculate the average annual rate of inflation over this period. Table Year CPI 2000 200.2 2001 205.6 2002 208.2 2003 209.1 4.45% 1.46% 2.97%arrow_forward
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