Federal Minimum Wage Real Value of YEAR CPI (Annual Avg) (Nominal) Minimum Wage 1938 14.1 0.25 1939 13.9 0.3 1940 14.0 0.3 1941 14.7 0.3 1942 16.3 0.3 1943 17.3 0.3 1944 17.6 0.3 1945 18.0 0.4 1946 19.5 0.4 1947 22.3 0.4 1948 24.1 0.4 1949 23.8 0.4 1950 24.1 0.75 1951 26.0 0.75 1952 26.5 0.75 1953 26.7 0.75 1954 26.9 0.75 1955 26.8 0.75 1956 27.2 1 1957 28.1 1 1958 28.9 1 1959 29.1 1 1960 29.6 1 1961 29.9 1.15 1962 30.2 1.15 1963 30.6 1.25 1964 31.0 1.25 1965 31.5 1.25 1966 32.4 1.25 1967 33.4 1.4 1968 34.8 1.6 1969 36.7 1.6 1970 38.8 1.6 1971 40.5 1.6 1972 41.8 1.6 1973 44.4 1.6 1974 49.3 2 1975 53.8 2.1 1976 56.9 2.3 1977 60.6 2.3 1978 65.2 2.65 1979 72.6 2.9 1980 82.4 3.1 1981 90.9 3.35 1982 96.5 3.35 1973 44.4 1.6 1974 49.3 2 1975 53.8 2.1 1976 56.9 2.3 1977 60.6 2.3 1978 65.2 2.65 1979 72.6 2.9 1980 82.4 3.1 1981 90.9 3.35 1982 96.5 3.35 1983 99.6 3.35 1984 103.9 3.35 1985 107.6 3.35 1986 109.6 3.35 1987 113.6 3.35 1988 118.3 3.35 1989 124.0 3.35 1990 130.7 3.8 1991 136.2 4.25 1992 140.3 4.25 1993 144.5 4.25 1994 148.2 4.25 1995 152.4 4.25 1996 156.9 4.75 1997 160.5 5.15 1998 163.0 5.15 1999 166.6 5.15 2000 172.2 5.15 2001 177.1 5.15 2002 179.9 5.15 2003 184.0 5.15 2004 188.9 5.15 2005 195.3 5.15 2006 201.6 5.15 2007 207.342 5.85 2008 215.303 6.55 2009 214.537 7.25 2010 218.056 7.25 2011 224.939 7.25 2012 229.594 7.25 2013 232.957 7.25 2014 236.736 7.25 2015 237.017 7.25 2016 240.007 7.25 2017 245.120 7.25 2018 251.107 7.25 2019 255.657 7.25 2020 258.811 7.25 2021 270.970 7.253. Income Distribution exercise: The following table shows income distribution data for an economy in 1977 and 1999. Plot the Lorenz curves for the economy in 1977 and 1999 in a single diagram (use Excel). What do these curves indicate about how income distribution has changed in the US over the past two decades? Share of Aggregate lnco me Household Group 1977 1999 One-fifth with lowest income 4.8% 2.5% Next lowest one-fifth 6.2% 5.3% Middle one-fifth 18.7% 17.1% Next highest one-fifth 25.6% 21.8% One-fifth with highest income 44.7% 53.3% 4. Price Index Problem: The following table gives information about weekly per capita food consumption and food prices in Russia before and after the 1917 Communist Revolution. Taking 1913 as the base year, calculate a Food Price Index for 1928 and 1940. Average weekly wages for the years covered in the table were 6 rubles in 1913, 14 rubles in 1928 and 83 rubles in 1940. Using the Food Price Indexes you have just calculated, assess what happened to the real wages of Russian workers between 1913 and 1940. Food prices in Russia before and after the 1917 Revolution (in rubles per kilogram, except milk in liters and eggs in units) Foodstuffs consumed weekly Price Price Price in Moscow in 1926 Quantity 1913 1928 1940 Black Bread 2.46 kgs 0.07 0.08 0.85 Wheat flour 0.79 kgs 0.12 0.22 2.90 Potatoes 3.04 kgs 0.05 0.09 1.20 Beef 0.92 kgs 0.46 0.87 12.00 Mutton 0.17 kgs 0.34 0.79 14.00 Sugar 0.45 kgs 0.34 0.62 3.80 Milk 1.24 ltrs 0.11 0.06 2.10 Butter 0.11 kgs 1.15 2.43 17.50 Eggs 1.60 eggs 0.13 0.20 0.85 Sunower oil 0.12 kgs 0.15 0.53 15.65 YET NOTHER IMPORTANT THING: Use Excel to construct the requested diagrams in Problems 3 & 5. I have posted a tutorial on Canvas; if you haven't looked at it, you should do so for this assignment. 1. The following is a list of an economy's National Income Account data for a particular year (in billions of dollars). Government Transfer Payments: $16 Income Receipts from Rest of the World 37 Income Payments to Rest of the World 45 Government Purchases Of Goods & Services: 69 Personallncome Taxes: 38 Corporate Income Taxes: 28 Indirect Business Taxes: 12 Payroll Taxes: 21 Undistributed Corporate Prots: 19 Wages & Salaries: 230 Personal Consumption Expenditures: 267 Depreciation (Capital Consumption Allowance): 14 Net Private Domestic Investment: 47 Rents: 16 Exports: 24 Corporate Profits: 88 Interest Income: 19 Dividends: 23 Imports: 17 Proprietors' Income: 25 Calculate GDP, GNP, NNP, National Income, Personal Income and Disposable Personal Income. You should be able to compute GDP using both the expenditures approach and the income approach. 2. Using the following data, calculate GDP, GNP and NNP by both the expenditure approach and the income approach (dollars in billions). Indirect Business Taxes: $2 1 7 .5 Personal Consumption Expenditures: 2,672.8 Gross Private Domestic Investment: 895.3 Government Purchases of Goods & Services: 934.7 Depreciation;I Capital Consumption Allowance: 287 .2 Wages & Salaries: 2,896.5 Income Receipts from Rest of the World 247.1 Income Payments to Rest of the World 188.9 By the way, what is Net Investment for this economy? Net Exports: 23.3 Corporate Profits: 680.7 Interest Income: 279.8 Proprietors' Income: 1306 Rents: 33.8 Hints for the Lorenz Curve Problem Household Group Share of Aggregate Income in 1977 One-fifth with lowest income 5.7% Next lowest one-fifth 11.5% Middle one-fifth 16.4% Next highest one-fifth 22.8% One-fifth with highest income 43.6% 1. Convert all data to decimal notation. The arithmetic is easier that way. 2. Determine the cumulative shares: the data in the table are for each separate fifth of the population: to graph the Lorenz curve and to calculate the Gini Index, you need to cumulate them into running totals, like so: Household Group Share of Aggregate Income in 1977 .20 057 .40 172 [=.075 + .115] .60 etc. .80 etc. 1.0 1.000 3. The numbers in this new table are the horizontal & vertical coordinates of the points on the Lorenz curve: (.20, .057), (.40, .172) etc. 4. In the assignment I gave you data for two years. The two Lorenz curves should be plotted in the same graph. 5. Excel will save you some time on this and I want you to get practice using Excel. So please use Excel to construct the Lorenz curves. Refer to the tutorials on Canvas to see how to perform basic mathematical operations using Excel and how to construct diagrams.4. Price Index Problem: The following table gives information about weekly per capita food consumption and food prices in Russia before and after the 1917 Communist Revolution. Taking 1913 as the base year, calculate a Food Price Index for 1928 and 1940. Average weekly wages for the years covered in the table were 6 rubles in 1913, 14 rubles in 1928 and 83 rubles in 1940. Using the Food Price Indexes you have just calculated, assess what happened to the real wages of Russian workers between 1913 and 1940. Food prices in Russia before and after the 1917 Revolution (in rubles per kilogram, except milk in liters and eggs in units) Foodstuffs consumed weekly Price Price Price in Moscow in 1926 Quantity 1913 1928 1940 Black Bread 2.46 kgs 0.07 0.08 0.85 Wheat flour 0.79 kgs 0.12 0.22 2.90 Potatoes 3.04 kgs 0.05 0.09 [.20 Beef 0.92 kgs 0.46 0.87 12.00 Mutton 0.17 kgs 0.34 0.79 14.00 Sugar 0.45 kgs 0.34 0.62 3.80 Milk 1.24 ltrs 0.11 0.06 2.10 Butter 0.11 kgs 1.15 2.43 17.50 Eggs 1.60 eggs 0.13 0.20 0.85 Sunower oil 0.12 kgs 0.15 0.53 15.65 5. The Real Value of the US Federal Minimum Wage: The Federal minimum wage was enacted in the mid-19305 and became effective in 1938. On the Canvas link to this assignment you will nd an Excel file that provides data running from 1938 to 2021 on (i) the nominal value of the minimum wage set by Congress, and (if) the average annual Consumer Price Index. Use these data to calculate the real value of the minimum wage in each of the years indicated (that is, ll in the fourth column on the Spreadsheet). Then graph the movement of the Real Minimum Wage from 1938 to 1921. You should complete this question in Excel. On the Canvas page for this course, I have uploaded a link to a short video that shows how to perform basic mathematical operations in Excel; there is also a tutorial on constructing charts in Excel. As indicated above, you should submit the answer to this question on Canvas as a separate Excel file