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 were equal to ________ in 2012.
A)$9
B)$9.52
C)$10
D)$12

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 were equal to ________ in 2012.
A)$9
B)$9.52
C)$10
D)$12

Quizplus · Accepted Answer

Real average hourly earnings can be calculated by dividing the nominal average hourly earnings by the CPI and then multiplying by 100. Thus, real average hourly earnings in 2012 were:

(10/105) x 100 = 9.52

Therefore, the best choice is B.

Table 13-15 -Refer to Table 13-15