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Use the Consumer Price Index Below to Answer the Question

question 275

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Use the Consumer Price Index below to answer the question.  Average Annual Consumer Price Index (1982-1984 = 100)  Year  CPI  Year  CPI  Year  CPI 1986109.61995152.42004188.91987113.61996156.92005195.31988118.31997160.52006201.61989124.01998163.02007207.31990130.71999166.62008215.31991136.22000172.22009214.51992140.32001177.12010218.11993144.52002179.92011224.91994148.22003184.02012229.6\begin{array}{l}\text { Average Annual Consumer Price Index (1982-1984 = 100) }\\\begin{array} { c | c | c | c | c | c } \text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \\\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \\1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \\1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \\1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \\1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \\1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \\1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \\1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \\1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6\end{array}\end{array}
-The table below shows the federal hourly minimum wage in various years.  Year  Minimum wage 1990$3.501991$4.251996$4.751997$5.15\begin{array} { l | c } \text { Year } & \text { Minimum wage } \\\hline 1990 & \$ 3.50 \\1991 & \$ 4.25 \\1996 & \$ 4.75 \\1997 & \$ 5.15\end{array} What was the relative change in the minimum wage from 1990 to 1997? How does this
compare to the overall rate of inflation as measured by the CPI? In which of those two
years was the purchasing power of the minimum wage higher?


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