Use the Consumer Price Index Below to Answer the Question

question 275

Essay

Use the Consumer Price Index below to answer the question. $$\begin{array}{l}\text { Average Annual Consumer Price Index (1982-1984 = 100) }\\\begin{array} { c | c | c | c | c | c } \text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \\\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \\1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \\1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \\1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \\1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \\1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \\1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \\1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \\1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6\end{array}\end{array}$$
-The table below shows the federal hourly minimum wage in various years. $$\begin{array} { l | c } \text { Year } & \text { Minimum wage } \\\hline 1990 & \$ 3.50 \\1991 & \$ 4.25 \\1996 & \$ 4.75 \\1997 & \$ 5.15\end{array}$$ 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?

---

Definitions:

Formal Authority

The power granted to an individual or organization based on established laws, rules, or positions, enabling them to enforce rules and make decisions.

Military Rank

A hierarchical position in armed forces determining authority, duties, and status.

Inuit Societies

Indigenous peoples living in the Arctic regions of Greenland, Canada, and Alaska, known for their rich culture and adaptation to cold environments.

Verbal Insult

An offensive or disrespectful remark or statement directed towards someone.