a) A single copy of the Ottawa Citizen cost $0.10 in 1970 and $0.50 in 1990. The average wage in manufacturing was $3.01 per hour in 1970 and $14.19 in 1990. A) By what percentage did the price of a newspaper rise? B) By what percentage did the wage rise? C) In each year, how many minutes does a worker have to work to earn enough to buy a newspaper? D) Did workers’ purchasing power in terms of newspapers rise or fall? 

b) When deciding how much of their income to save for retirement, should workers consider the real or the nominal interest rate that their savings will earn? Explain.