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Unformatted text preview: how much did the price level increase over these years? Are the minimum wage workers better off in 2002 than they were in 2000 (according to your estimation)? Macro Recitation IC-3 Now inflate the 2000 minimum wage to 2002 prices. Does this imply the same conclusion? Deflate the 2002 minimum wage to 2000 prices. Does this imply the same conclusion? Suppose you borrow a large sum of money in 2001 to be repaid in 2002 at an interest rate of 10% which, at the time, seems like a lot but you really need the money. What is the real interest rate that you'll have to pay?...
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- Spring '08