Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

Exercise 3

Use your answers from problems 2(a) and 2(b) to obtain the total percentage change in real weekly earnings (excluding benefits) from 2000 to 2005. (Hint: Use the approximation rule.)
Reference:
2. Using the data in Table 2, calculate the following for the period 2000-2005:
a. The total percentage change in the nominal weekly earnings
b. The total percentage change in the price level

4. Calculate the total percentage change in real weekly earnings (excluding benefits) from 2000 to 2005 using the last column of Table 2. Compare your answer to the answer in problem 3. Which is the more accurate answer?
5. Given the following year-end data, calculate both the inflation rate and the real hourly wage rate for years 2, 3, and 4.