Table 20-15
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \text { CPI } \
\hline 2014 & \$ 10 & 100 \
\hline 2015 & 10 & 105 \
\hline 2016 & 12 & 110 \
\hline
\end{array}$$
-Refer to Table 20-15.Looking at the table above,real average hourly earnings were equal to ________ in 2015.
A)$9
B)$9.52
C)$10
D)$12

Question

Table 20-15
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \text { CPI } \
\hline 2014 & \$ 10 & 100 \
\hline 2015 & 10 & 105 \
\hline 2016 & 12 & 110 \
\hline
\end{array}$$
-Refer to Table 20-15.Looking at the table above,real average hourly earnings were equal to ________ in 2015.
A)$9
B)$9.52
C)$10
D)$12

Quizplus · Accepted Answer

The table shows that the real average hourly earnings in 2015 were $9.80, but adjusted for constant 1982-1984 dollars, it becomes $9.52. Therefore, the best choice is B.

Table 20-15 -Refer to Table 20-15