The table below lists hypothetical CPI and wage values for the United States from different decades.

a. Complete the table by computing the real income for each year shown in the table.

Instructions: Round your answers to two decimal places.

        Nominal and Real Income

Year	Average Nominal Wage (dollars)	CPI	Average Real Wage (dollars)
1967	$6,764	31.9	$
1977	13,111	58.1
1987	25,030	109.6
1997	35,532	154.1
2007	47,983	198.2
2013	50,262	225

Instructions: Enter the year using all four numbers (yyyy).

b. Of the years listed above, the paycheck of the average worker was highest in?

 

c. Of the years listed above, the purchasing power of the average worker was highest in?

Answer rating: 100% (QA)

Solution a To calculate the real income for each year we nee... View the full answer