Question

Table 20-10 Nominal Average Hourly Earnings $10 CPI (1982-1984 -100) Year 2007 2008 2009 105 110 58) Refer to Table 20-10. Looking at the table above, what is the approximate rate of growth of real 58) average hourly earnings from 2007 to 2008? A) 1596 B) 4.4% C)-1.5% D)-4.8% 59) Refer to Table 20-10. Looking at the table above, what is the rate of growth of the average price 59) level from 2008 to 2009? A) 1% B)290 C) 3.5% D) 4.76% E) 5.25%

Can you solve both

Answer 1

58) The correct answer is D) - 4.8%

The real average hourly earnings in 2007 = $ 10 $\div$ 1

The real average hourly earnings in 2007 = $ 10

The real average hourly earnings in 2008 = $ 10 $\div$ 1.05

The real average hourly earnings in 2008 = 9.52

Rate of growth of real average hourly earnings from 2007 to 2008 = ( $ 9.52 - $ 10 ) $\div$ $ 10

Rate of growth of real average hourly earnings from 2007 to 2008 = - 4.8%

_______________________________________________________________________

59) The correct answer is D) 4.76%

Rate of growth of the average price level from 2008 to 2009 = ( 110 - 105 ) $\div$ 105

Rate of growth of the average price level from 2008 to 2009 = 4.76%

____________________________________________________________________