Question

OLUTI.CZ Seved According to the New Hampshire Department of Education, the average teacher salary in public school districts in New Hampshire was $45,328 in 2006, $46,733 in 2007 and $45,328 in 2008 Use the following information on CPI and PPI Year CPE (1992 - 14 - 100) P (1982-100) 2006 201.59 164.80 2007 207.34 172.70 2008 215.30 189.60 2005 214.54 172.90 Source: Bureau of Labor Statistics a. Calculate the real salary for the teachers. (Round your answers to 2 decimal places.) Real Salary Year 2005 2007 2000 b. Calculate the percentage change in the dollar value inominal) as well as the purchasing power real) of plaries. Leave no cells blank.be certain to enter "o" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places) Year Nominal Salary Real Salary 2007 MacBook Air 30 sas 2 23 3 $ 4 % 5 6 & 7 8 9 0 Q W E R T Y P C A S F G H J K L 7 1 M MA

Answer 1

ANSWER:

Given

a)

The average teacher salary in public school districts in New Hampshire.

We need to find percentage change in the nominal dollar value then real purchasing power of salaries.
First, we need to find real salary then we can find percentage change in the nominal dollar value then real purchasing power of salaries.

The average teachers salary in real terms for the year 2006 is:

The average teachers salary $45,328 and CPI 201.59 for finding real salary for the year 2006

$\small Real salary = \frac{Nominal Salary}{CPI}*100$

45. 328 201.59 * 100

= $22,485.24

The average teachers salary in real terms for the year 2006 is $22,485.24

The average teachers salary $46,733 and CPI 207.34 for finding real salary for the year 2007

46. 733 20734 * 100

= $22,539.31

The average teachers salary in real terms for the year 2007 is $22,539.31

The average teachers salary $45,328 and CPI 215.30 for finding real salary for the year 2008

$\small = \frac{45,328}{215.30}*100$

= $21,053.41

The average teachers salary in real terms for the year 2008 is $21,053.41

Year	Real salary
2006	$22,485.24
2007	$22,539.31
2008	$21,053.41

b)

we need to compute the percentage change in nominal as well as real hourly earnings.

We can not find for year 2006 percentage change in the nominal dollar value then real purchasing power of salaries due to we have no information about the year 2006.

The percentage change in nominal salary for year 2007 is:

$\small Nominal salary = \frac{Nominal value_{2007}-Nominal value_{2006}}{Nominal value_{2006}}*100$

$\small =\frac{46,733-45,328}{45,328}*100$

= 3.10%

The percentage change in nominal salary for year 2007 is 3.10%

The percentage change in real salary for year 2007 is

$\small Real salary= \frac{Real value_{2007}-Real value_{2006}}{Real value_{2006}}*100$

$\small =\frac{22,539.31-22485.24}{22485.24}*100$

= 0.24%

The percentage change in real salary for year 2007 is 0.24%

The percentage change in nominal salary for year 2008 is:

$\small Nominal salary = \frac{Nominal value_{2008}-Nominal value_{2007}}{Nominal value_{2007}}*100$

$\small = \frac{45328-46733}{46733}*100$

= -3.01%

The percentage change in real salary for year 2008 is

$\small Real salary= \frac{Real value_{2008}-Real value_{2007}}{Real value_{2007}}*100$

$\small =\frac{21,053.41-22539.31}{22539.31}*100$

= -6.59

Year	Nominal Salary(%)	Real Salary(%)
2006	---	---
2007	3.10	0.24
2008	-3.01	-6.59

If you have any doubts please comment and please don't dislike.

PLEASE GIVE ME A LIKE. ITS VERY IMPORTANT FOR ME.