Calculate the minimum wage for each year in real (1982-1984) dollars, filling in the "real dollars" row in the table. In what year would a minimum-wage worker have had the greatest amount of purchasing power?

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Bentley Andrews

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16 February, 13:39

Calculate the minimum wage for each year in real (1982-1984) dollars, filling in the "real dollars" row in the table. In what year would a minimum-wage worker have had the greatest amount of purchasing power?

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Azaria Moses · Answer 1

The consumer Price Index measures the rate of inflation as it relates to to day-to-day living expenses. If CPI in a given year is 200, a minimum wage worker will need 200 dollars to purchase the equivalent of what she or he could have bought for 100 dollars. Base year's dollar = base year's CPI / given year's CPI x given year's minimum wage.

3.35, 5.79, 7.45, 9.12, 9.26, 9.48

2001-2003