Using the Following Table,calculate Real Average Hourly Earnings for 2016,2017,and

question 22

Essay

Using the following table,calculate real average hourly earnings for 2016,2017,and 2018.Calculate the rate of growth of real average hourly earnings from 2017 to 2018.
$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Nominal Average } \\\text { Hourly Earnings, \$ }\end{array} & \text { CPI } \\\hline 2016 & 10 & 100 \\\hline 2017 & 11 & 105\\\hline 2018 & 12 & 110 \\\hline\end{array}$$ _____________________________________________________________________________________________
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Definitions:

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Lower of Cost

An inventory valuation method requiring inventory to be recorded at the lower of its historical cost or current market value.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are the first to be expensed.

Inventory Holding Gains

Inventory holding gains are increases in the value of inventory a company holds due to price inflation or increased demand, not yet realized through sales.