ECON 252 - Correcting Variable for Inflation

ECON 252 - Correcting Variable for Inflation - CPI (1964):...

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ECON 252 - Correcting a Variable for Inflation Comparing prices in different times: == * Practice Problem: Determine if the minimum wage was more valuable in 1964 than it was in 2007 Minimum Wage (1964): $1.15 Minimum Wage (2007): $5.85
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Unformatted text preview: CPI (1964): 31.3 CPI (2007): 211.7 Solution: = $1.15 * = $7.78 Since $7.78 > $5.85, the minimum wage in 1964 was much more valuable than it was in 2007. This gives more purchasing power to those in 1964....
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