Table 13-14 The Table Above Reports the Nominal Average Hourly Earnings in Nominal

question 280

Multiple Choice

Table 13-14
$\begin{array}{|c|c|c|}\hline \text { Year } & \begin{array}{c}\text { Nominal Average } \\\text { Hourly Earnings }\end{array} & \begin{array}{c}\text { CPI (1982-1984 = } \\\mathbf{1 0 0}) \end{array} \\\hline 1965 & \$ 2.65 & 32 \\\hline 2010 & 22.59 & 219 \\\hline\end{array}$ The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010.
-Refer to Table 13-14.The real average hourly earnings for 1965 in 2010 dollars equal

• A) $3.87.
• B) $5.80.
• C) $12.10.
• D) $18.14.

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Definitions:

Effectiveness Lag

The delay between the implementation of a policy and the time it takes for the policy's effects to manifest in the economy.

Monetary Policy

Economic strategy chosen by a government's central bank to control the money supply, aiming at achieving macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.

Adaptive Expectations

An economic theory suggesting that people adjust their future expectations based on past experiences and trends.

Government Policy

The actions taken by a government to achieve its objectives in various sectors like economy, social welfare, and public services.