The table below presents some data on the federal minimum wage, the CPI-U, and the PCE price index (another price index) for selected years.

Year / Minimum Wage. / CPI / PCE Price Index

1949 $0.40 23.8. n/a

1956 $1.00 27.2 n/a

1968 $1.60 34.8 19.1

1980 $3.10 82.4 41.1

1995 $4.25 152.4 71.8

2009 $7.25 214.5 94.1

2019 $7.25 255.7 109.7

If you use the CPI as the price index, in what year did the minimum wage have its greatest purchasing power?

What was it equivalent to in 2019 $s?

Repeat the steps above using the PCE price index.

Briefly explain your calculations and what you observed working with these data.