Table 13-19
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c }
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 110\
\hline
\end{array}$$
-Refer to Table 13-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2011 to 2012?
A)15%
B)4.4%
C)-1.5%
D)-4.8%

Question

Table 13-19
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average Hourly } \
\text { Earnings }
\end{array} & \begin{array} { c } 
\text { CPI } \
( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )
\end{array} \
\hline 2011 & \$ 10 & 100 \
\hline 2012 & 10 & 105 \
\hline 2013 & 12 & 110\
\hline
\end{array}$$
-Refer to Table 13-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2011 to 2012?
A)15%
B)4.4%
C)-1.5%
D)-4.8%

Quizplus · Accepted Answer

The real average hourly earnings are calculated by adjusting nominal earnings for inflation using the CPI. From 2011 to 2012, nominal earnings remained the same, but the CPI increased, indicating a decrease in real earnings. The approximate rate of growth is -4.8%.

Table 13-19 -Refer to Table 13-19