Average hourly wages for production workers in February 1996 were $11.86; in February 2009, they were $18.55. The CPI in February 1996 was 154.9; in February 2009 it was 212.2.
a. Deflate the hourly wage rates in 1996 and 2009 to find the real wage rates.
b. What is the percentage change in actual hourly wages from 1996 to 2009?
c. What is the percentage change in real wages from 1996 to 2009?