Changes in Wages and Consumer Prices. The following table shows for 1980 and 2004 the cost of a standard basket of consumer goods (a standard bundle of food, housing, and other goods and services) and the nominal average wage (hourly earnings) for workers in several sectors of the economy.

a. Complete the table by computing the percentage changes of the cost of the basket of consumer goods and the nominal wages.

b. How do the percentage changes in nominal wages compare to the percentage change in the cost of consumer goods?

c. Which sectors experienced an increase in real wages, and which sectors experienced a decrease in real wages?

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Nominal Nominal Wage: Cost of Nominal Wage: Leisure Nominal Wage: Year Consumer Wage: Basket Manufacturing Services Hospitality Information Professional and 1980 $82 $7.52 $7.48 $4.05 $9.83 2004 189 16.34 17.69 9.01 21.70 Percent change from 1980 to 2004