In 1997, the federal minimum wage was $5.15, 10 years later it is $7.25. The CPI was 156.9 at the beginning of 1997, 10 years later it stands at 260.28.The nominal wage growth during this period was blank1 - Numeric Answer%.*The inflation rate during this period was blank2 - Numeric Answer%.*(*) Write your answer in percentage. If your answer is 0.6435, write 64.35.Has the minimum wage kept up with inflation? (Answer yes or no) blank3 - Word AnswerWrite your response here....

What has been the average rate of inflation in the United States over the last few decades?15% per yearLess than 4% per year5% per yearMore than 20% per year

Match! The price level in 1990 was 120 while it increased to 150 by 2009. The federal minimum wage was $3.8 per hour while it reached $7.25 per hour by 2009. If your answer is 56.78%, write 56.78. Round up to the four decimal. If your answer is 0.56779, then type 56.78%Drag and drop options on the right-hand side and submit. For keyboard navigation...SHOW MOREPress space or enter to grab 3.46Inflation rate for the entire period (1990-2009)3.46Press space or enter to grab NoAnnualized inflation rateNoPress space or enter to grab 25Wage rate increase for the entire period (1990-2009)25Press space or enter to grab UnclearAnnualized wage rate changeUnclearPress space or enter to grab 90.79Wages kept up with inflation90.79Press space or enter to grab YesYesPress space or enter to grab 1.181.18

Passage 1 Raising the minimum wage for workers will provide a significant boost to the economy. For example, changing the minimum wage to $10.10 per hour would add $22 billion to the economy by increasing people’s purchasing power. Household spending would increase by $48 billion in one year with a similar minimum wage increase. Increased earnings lead to increased spending and a greater demand for products and services. This phenomenon then leads to the need for more workers and, thereby, job growth. Passage 2 The current federal minimum wage for workers is $7.25. If the government increased that by $1.75, studies show that household spending would also increase—by $48 billion annually. An economic move like this makes too much sense to ignore. A rise in household spending would mean an expansion in the profits of many businesses, including small businesses. As a small-business owner, I would certainly welcome the extra income. The last time the minimum wage was increased, my profit margin increased substantially. My fellow small-business owners experienced a similar profit growth that year. Which passage provides more effective evidence, and why? Passage 1 is more effective because the evidence is logical and does not include fallacies. Passage 1 is more effective because the evidence is logical and cannot be opposed. Passage 2 is more effective because the evidence is emotional and includes two perspectives. Passage 2 is more effective because the evidence is logical and is supported by anecdotes.

Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Product Quantity Base year price (2010) Price (2019) Price (2020) Pencils 8 $2 $3 $3.50 T-shirts 15 $5 $7 $6.75 Bananas 5 $1 $1.50 $1.75 -1.1% 1.1% -1.9% 1.5% 1.9%

While the economy is at potential output, the government increases spending. The following table describes the aggregate demand curves before and after an increase in government spending, where real GDP is expressed as the percent deviation from potential GDP, and inflation is expressed as a percentage.Real GDP (Before) Real GDP (After) Inflation2.0 4.0 3.01.0 3.0 4.00.0 2.0 5.0–1.0 1.0 7.0–2.0 0.0 9.0In the short run, what is the inflation rate after the increase in government spending?