Monday
November 24, 2014

Homework Help: macroeconomics

Posted by sally on Saturday, February 27, 2010 at 2:54pm.

Suppose in 2009 the united states congress passes a minimum wage law that increases the minimum wage (the lowest legal wage) to 7.25 per hour and has a provision that increases the minimum wage at the beginning of each year based on the CPI for the previous year.
a.) If the CPI increases 3 percent for each of the next four years (so inflation rate is 3% for each next four years), find the minimum wage for 2010 and 2011.

b.) if the CPI overstates inflation by 1%, calculate a revised minimum wage for each year 2010 to 2011 removing the CPI bias

C.) How much does the CPI bias affect the minimum wage in 2010 and 2011

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

algebra - Minimum Wage: The table shows minmum wage for three different years ...
math - Hi I can't remember how to figure this out. Can you give me an idea? In ...
Math - In 1968, the U.S. minimum wage was $1.60 per hour. In 1976, the minimum ...
algebra - restaurants typically pay wait staff an hourly wage that is lower than...
Algebra - Minimum Wage. In 1995, the minimum wage was $4.25 per hour, and by ...
Algebra - The table shows the minimum wage for three different years. Year 1940...
microeconomics - utilize your knowledge of supply/demand analysis and show ...
microeconomics - TRUE OR FALSE: 9. Assume that the Minimum Wage has increased to...
Math - 1. Make a scatterplot of the data in the viewing rectanlge[19030,2010,10]...
hr - To what extent is a company obligated to pay a wage that guarantees the ...

Search
Members