Problem
The following table shows a worker's wages (annual salary), from 2007 to 2010:
|
years
|
annueal salary
|
CPI (base 100=2005)
|
|
2007
|
7524
|
109
|
|
2008
|
8208
|
119
|
|
2009
|
8892
|
125
|
|
2010
|
9234
|
130
|
a) Calculate the time-series data that reflects changes in wages of workers taking 2007 as the reference or base year. Interpret the results you have got for the last two years.
b) Calculate the wages the worker has received in "real value", expressed in constant currencies from the year 2007.
c) Calculate the time- series data that reflects changes in real wages throughout the perios considered (constant currencies from 2007), and that allows us to compare them with the values obtained in quesion a). What conclutions can be drawn?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.