Answer:
A.Nominal wages will increase by 64%
B.Consumer prices will increase by 49.41%
C.Real wages will increase by 14.85%
Explanation:
The computations are shown below:
a. Computation for what percentage did nominal wages increase between 2000 and 2019
Using this formula
Nominal wages = (Average hourly wage 2019-Average hourly wage 2000)÷Average hourly wage 2000
Let plug in the formula
Nominal wages($23 - $14) / ($14)
Nominal wages= ($9) / ($14)
Nominal wages= 64%
Therefore Nominal wages will increase by 64%
b. Computation for what percentage did consumer prices increase between 2000 and 2019
Using this formula
Consumer prices=(CPI 2019-CPI 2000)÷CPI 2000
Let plug in the formula
Consumer prices= (254 - 170) / (170
Consumer prices= (84) / (170)
Consumer prices= 49.41%
Therefore Consumer prices will increase by 49.41%
c. Computation for real wages increase between 2000 and 2019
Real wages increase= ($14 × 254) / (170)
Real wages increase= $20.92
Real wages increase= $23 - $20.92
Real wages increase= $2.08
Real wages increase= ($2.08 / $14) × 100
Real wages increase= 14.85%
Therefore the Real wages will increase by 14.85%
