To Compare the $1-An-Hour Your Grandfather Earned in 1950 with the $8-An-Hour

question 219

Multiple Choice

To compare the $1-an-hour your grandfather earned in 1950 with the $8-an-hour you earn today, you would need to:

• A) simply compare $1-an-hour to $8-an-hour.
• B) add the inflation rates in each year since 1950 until today and add this to your grandfather's wage.
• C) calculate real wages in both 1950 and today.
• D) calculate your grandfather's nominal wage in 1950 and compare it to your wage today.

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