Table 13-15
$\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \text { CPI } \
\hline 2016 & \$ 10 & 100 \
\hline 2017 & 10 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$
-Refer to Table 13-15.Looking at the table above,real average hourly earnings in 2016 were
A) $9.
B) $9.52.
C) $10.
D) $12.63.

Question

Table 13-15
 $\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal Average } \
\text { Hourly Earnings }
\end{array} & \text { CPI } \
\hline 2016 & \$ 10 & 100 \
\hline 2017 & 10 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$
-Refer to Table 13-15.Looking at the table above,real average hourly earnings in 2016 were
A) $9.
B) $9.52.
C) $10.
D) $12.63.

Quizplus · Accepted Answer

Real average hourly earnings can be calculated by dividing the nominal average hourly earnings by the CPI and multiplying by 100. Using this formula, we get:

2016 real average hourly earnings = (10/100) * 100 = $10

Therefore, the real average hourly earnings in 2016 were $10.

Table 13-15 -Refer to Table 13-15