Table 13-15
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \text { CPI } \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 110 \
\hline
\end{array}$$
-Refer to Table 13-15.Looking at the table above,real average hourly earnings in 2011 were
A)$9
B)$9.52
C)$10
D)$12.63

Question

Table 13-15
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \text { CPI } \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 110 \
\hline
\end{array}$$
-Refer to Table 13-15.Looking at the table above,real average hourly earnings in 2011 were
A)$9
B)$9.52
C)$10
D)$12.63

Quizplus · Accepted Answer

Real average hourly earnings are calculated by dividing nominal earnings by the CPI (in hundredths). For 2011, it is $10 / (100/100) = $10.

Table 13-15 -Refer to Table 13-15