Question

In​ 1982-84 dollars, the real average hourly wage rate in 2005 was ​$8.18 and in 2006 ​, it was ​$8.24 . In 2005 ​, the CPI was 195.3 and in 2006 ​, the CPI was 201.6 . Calculate the nominal wage rate in 2005 and in 2006 .

Answer 1

Answer:

the nominal wage rate in 2005 and in 2006 is 15.98 and 16.61 respectively

Explanation:

The computation of the nominal wage rate in 2005 and in 2006 is shown below:

For the year 2005

= $8.18 × $195.3 ÷ 100

= 15.98

And, for the year 2006

= $8.24 × 201.60 ÷ 100

= 16.61

In this way it should be calculated

hence, the nominal wage rate in 2005 and in 2006 is 15.98 and 16.61 respectively