How are changes in the real wage rate related to changes in real GDP during most of the time pictured in your graph? Can you spot a short period of time on your graph when this relationship is violated? Explain what was going on during this short period of time which changed the normal relationship between changes in the real wage rate and changes in real GDP.

Here is a hint for the last question: A few times this semester you have read about an interesting phenomenon that took place during the Great Recession. This phenomenon is what caused real wages to behave in a weird way during that time.

FRED ~ - Average Hourly Earnings of Production and Nonsupervisory Employees, Total Private-Consumer Price Index for All Urban Consumers: All Items in U.S. City Average Real Gross Domestic Product 12.5 10.0 7.5 5.0 2.5 % Chg. from Yr. Ago-% Chg. from Yr. Ago , Percent Change from Year Ago 0.0 my -2.5 -5.0 -7.5 -10.0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Shaded areas indicate U.S. recessions. Sources: BLS; BEA fred.stlouisfed.org