Table 5-7 shows a mechanic's hourly wage and the respective price indexes for the years 1975 and 2005. Use the table to answer questions .
Table 5-7

-Refer to Table 5-7. What has happened to a mechanic's real hourly wage between 1975 and 2005?

Question

Table 5-7 shows a mechanic's hourly wage and the respective price indexes for the years 1975 and 2005. Use the table to answer questions .
Table 5-7
 
-Refer to Table 5-7. What has happened to a mechanic's real hourly wage between 1975 and 2005?

Quizplus · Accepted Answer

The real hourly wage accounts for inflation. If the real wage rose by 5%, it means the mechanic's purchasing power increased by that percentage over the period.

Table 5-7 Shows a Mechanic's Hourly Wage and the Respective