An economist is examining wage growth in the United States. They have collected data on average nominal hourly earnings for workers in the United States between 2006 and 2020, which are shown in the following chart.
Nominal Earnings in the United States between 2006 and 2020
Average Hourly Earnings ($)
The file nominalwages contains the data that were used to create the line chart shown above. This file also contains price index data that can be used to adjust the nominal hourly earnings in the file for inflation.
Use the price index data to adjust the nominal hourly earnings data for inflation using 3/1/2006 as the base period. Create a line chart for the inflation- adjusted hourly earnings, and compare it to the line chart above.
What do the inflation-adjusted hourly earnings data suggest about the growth of hourly wages between 2006 and 2020?
Compared to the line chart given for nominal hourly earnings, the inflation-adjusted hourly earnings grow –Select– the rate of inflation between 2006 and 2020 growth in hourly earnings –Select– the inflation-adjusted hourly earnings suggest that the
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Solution
Compared to the line chart given for nominal hourly earnings, the inflation-adjusted hourly earnings grow –Select– the rate of inflation between 2006 and 2020 growth in hourly earnings –Select– the inflation-adjusted hourly earnings suggest that the
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