Question
Hi, I have a question regards to finding the real wages. First, i can understand how to find the real wages with given nominal wages
Hi, I have a question regards to finding the real wages.
First, i can understand how to find the real wages with given nominal wages and
of course the given CPI index.
However, now my professor asks to find it via using PCE index,
"Personal Consumption Expenditures: Chain-type Price Index (PCEPI) | FRED |"
in which there is no way that i can get some hint out of it with googling.
so lets say,
May of 2016 nominal wage sets at $21.47, and
Jan of 2011 nominal wage sets at $19.32
now,
PCEI of may 2016 sets at 103.977
jan 2011 sets at 96.835
*note its different than what prof gave us
as i am just trying to understand
given this how can i find the real wage of may 2016, and jan 2011?
secondly, what makes the number of these two being different, and what would be the behind this
that differences in between finding the real wage with CPI and with PCEI
Thanks in advance.!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started