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?

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Definitions:

Sampling Frame

A list or database from which a sample is drawn for a study, representing the larger population.

Attempted Census

An effort made to enumerate every individual in a population, which may not be fully completed due to various reasons such as non-response or logistical challenges.

HR Department

Abbreviation for Human Resources Department, it's a division within a company focused on employee management, hiring, and workplace policies.

Job Satisfaction

A measure of how content an individual is with their job, which can affect performance and retention.