Question

Suppose registered nurses in 2007 made an average hourly wage of $30.04. In 2011, suppose their hourly wage had risen to $33.23. Given that the CPI for 2007 was 207.3 and the 2011 CPI was 224.9, answer the following.

(a) Give the real wages (in dollars) for registered nurses for 2007 and 2011 by deflating the hourly wage rates. (Round your answers to the nearest cent.)

Deflated 2007 wages =$

Deflated 2011 wages =$

(b) What is the percentage change in the actual hourly wage for registered nurses from 2007 to 2011? (Enter your percentage as a positive value. Round your answer to the nearest integer.)

The percentage  ---Select--- "increase" or "decrease" in actual hourly wages is _______ %.

(c) For registered nurses, what was the percentage change in real wages from 2007 to 2011? (Enter your percentage as a positive value. Round your answer to the nearest integer.)

The percentage  ---Select--- "increase" or "decrease" in real hourly wages was _______ %.

Answer 1

Year wage C$) actual hourly wage to registered nurce fom Thas dos registered nurces, the percentage increase a) we de flate an houny wage rate in a year by the corresponding value of the cp1 CConsumer Brice index) in that year and then multiplying by 100. using the Cpl to deflate the hously wage rates the real hourly wages fro registed nurces des 207 and 2011 are below shown in the table Average Hourly CPI Deblated Average Hously Wage($) 2007 30.04 907.03 2011 33.23 224.9 b) to find the percentase change in the average al compute hourly wases from 2007 to 2011 is 110.627 (30.04/207.03) (100) - 14.49 (33.33/224.9) Cloo) 14.78 2007 to 2011 33.23 Cloo) 110.62 3604 in actual

© To find the Percentage Change in the areage real hously wase registered nurces from 2007 to Compute 2011, we =102.00 14.78 (100) 14.49 nurses the percentage wases from 2007 to 2011 is Thus, tos registered increase in real hously 21.