Nominal & Real Wages60 pts

Table 4 gives average hourly nominal wages in manufacturing and the price levels in the Narnia from 1925 to 1930. Answer each question only in a manner appropriate for the issue at hand. (Hint: recall the baby weight example in Zoom lecture.)

Be sure to demonstrate with all data for comparative purposes. (Show all work in context. Make sure the final result is in proper format.)

Table 4 Year	Nominal Wages ($/hour)	Price Level (CPI)
1925	12.07	148.2
1926	12.37	152.4
1927	12.77	156.9
1928	13.17	160.5
1929	13.49	163.0
1930	13.91	166.6

a) For each year, calculate the real wage.

b) In what year did the nominal wage increase the most?

c) In what year did the real wage increase the most?

d) In what year was the inflation rate the highest?