f) Suppose CPlis as follows in each year: Year: | 2007 | 2008 | 2009 2010 CPL. | 100 | 99 | 125 140 Suppose in the year 2007 you are considering a job offer that pays $50,000 in 2007, plus a 10% (compounding) raise in each of the next three years. 1. What nominal salary will you make in each year? Nommal Salary 2. What will your real salary be in each year, using a 2007 base year? Salary in 2007% 3. What will your real salary be in each year, using a 2009 base year? Year: 2007 2008 2009 2010 Salary in 2010$ 4. In what year was your real salary highest? 5. Does your answer to 4 depend on the base year selected? 6. Suppose instead your contract gave you $50,000 in 2007, plus a cost of living adjustment equal to the percentage change in CPI. Compute the nominal wage in each year. Year: 2007 2008 2009 2010 Nominal Salary 7. In what years is this contract better than the original one