Question

In​ 1986, 1996, and​ 2006, average weekly earnings in the United States were​ $310, $413, and​ $567 respectively. In​ 1986, 1996, and​ 2006, the CPI was​ 110, 157, and 202 respectively. What are the real average weekly earnings in each​ year?In​ 1986, 1996, and​ 2006, average weekly earnings in the United States were​ $310, $413, and​ $567 respectively. In​ 1986, 1996, and​ 2006, the CPI was​ 110, 157, and 202 respectively. What are the real average weekly earnings in each​ year?

Answer 1

Answer:

1986: 281.82

1996: 263.06

2006: 280.69

Explanation:

RWAE = Real weekly average earning = (Earning / CPI) * 100

Year 1986 :

Earning = 310

CPI = 110

RWAE = (310 / 110) * 100  = 281.82

Year 1996 :

Earning = 413

CPI = 157

RWAE = (413 / 157) * 100 = 263.06

Year 2006:

Earning = 567

CPI = 202

RWAE  = (567 / 202) * 100 = 280.69

Hope this helps!