Donna Newton Made $0

question 166

Multiple Choice

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield,Pennsylvania.If the consumer price index (CPI) was 18.3 in 1946 and 202.4 in 2011,then Donna's inflation-adjusted wage would be

• A) $7.25,by U.S.law.
• B) $0.30.
• C) $2.87.
• D) $0.61.
• E) $3.32.

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Definitions:

Unemployed

Refers to individuals who are without a job but are actively seeking work.

Contraction

The downturn of the business cycle, when real GDP is declining.

Recovery Phase

A period within the economic cycle where activity rebounds following a recession, characterized by increasing GDP, employment, and investment.

Expansion

In economics, expansion refers to a phase of the business cycle where the economy grows and output increases, often characterized by rising employment and income.