Question - The following table shows a worker's wages (annual salary), from 2007 to 2010:
|
Years
|
Annual 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 periods considered (constant currencies from 2007), and that allows us to compare them with the values obtained in quesion a). What conclusions can be drawn?