I need help calculating the real wage based on 1965 prices. What has happened to the...
I need help calculating the real wage based on 1965 prices. What has happened to the purchasing power of the minimum wage over this period
| Year | min. wage | Cpi of1965 = 100 |
| 1965 | 1 | 100 |
| 1976 | 2.65 | 185.12 |
| 2019 | 14 | 809.52 |
Homework Answers
Answer
real wage =(nominal wage/CPI of the year)*100
real wage in the base year is the same as nominal wage
real wage in 1965=(1/100)*100=$1
real wage in 1976=(2.65/185.12)*100
=1.43150389
=1.43
======
real wage in 2019=(14/809.52)*100
=1.7294199
=$1.73
The minimum wage in real term increased over the period from $1 to $1.73.
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I need help calculating the real wage based on 1965 prices. What
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Quick Question: What has happened to the purchasing power of the minimum wage over this period (i.e., has it increased or decreased)? And the % change between 1965 and 2019 for each of the columns. Thanks! Year min wage CPI 1965 = 100 Real wages based on 1965 prices 1965 1 100 1 1967 2.65 185.12 1.43 2019 14 809.52 1.73
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