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 were equal to ________ in 2017.
A) $9
B) $9.52
C) $10
D) $12

Question

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

Quizplus · Accepted Answer

To find the real average hourly earnings in 2017, we need to adjust the nominal average hourly earnings for inflation using the Consumer Price Index (CPI). The real average hourly earnings formula is: 
Real average hourly earnings = Nominal average hourly earnings / CPI x 100

So for 2017, we have: 
Real average hourly earnings = 10 / 105 x 100 = $9.52 (rounded to the nearest cent)

Therefore, the best choice is B) $9.52.

Table 13-15 -Refer to Table 13-15