Table 13-14
$\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \begin{array}{c}
\text { CPI (1982-1984 = } \
\mathbf{1 0 0})
\end{array} \
\hline 1965 & \$ 2.65 & 32 \
\hline 2010 & 22.59 & 219 \
\hline
\end{array}$ The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010.
-Refer to Table 13-14.The percentage change in real average earnings from 1965 to 2010 equals
A) 2.0 percent.
B) 19.7 percent.
C) 24.6 percent.
D) 80.3 percent.

Question

Table 13-14
 $\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \begin{array}{c}
\text { CPI (1982-1984 = } \
\mathbf{1 0 0})
\end{array} \
\hline 1965 & \$ 2.65 & 32 \
\hline 2010 & 22.59 & 219 \
\hline
\end{array}$ The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010.
-Refer to Table 13-14.The percentage change in real average earnings from 1965 to 2010 equals
A) 2.0 percent.
B) 19.7 percent.
C) 24.6 percent.
D) 80.3 percent.

Quizplus · Accepted Answer

To find the percentage change in real average earnings, we need to adjust the nominal average hourly earnings using the CPI.

Real earnings in 1965:

$\frac{\$2.65}{32} \times 100 = \$8.28$

Real earnings in 2010:

$\frac{\$22.59}{219} \times 100 = \$10.32$

Percentage change:

$\frac{10.32-8.28}{8.28} \times 100 \approx 24.6\%$

Therefore, the correct answer is C.

Table 13-14 The Table Above Reports the Nominal Average Hourly Earnings in Nominal