In 2019, real per capita (per person) income was $66,009, as measured by 2019 dollars. In 1962, real per capita income was $27,750, also as measured by 2019 dollars.

a. Suppose someone works 40 hours a week for 50 weeks a year (so they are working 2000 hours) and earns income equal to average income in 2019. How much do they earn per hour? Suppose someone in 1962 works 40 hours per week for 50 weeks and earns income equal to average income in 1962 (as measured by 2019 dollars). How much do they earn per hour?

b. Christmas is coming, the goose is getting fat! You are living in 1962 and decide to buy the family a coffeemaker for Christmas. A coffeemaker in the 1962 Sears Christmas catalog costs $11.66, in 1962 dollars. What would the price be as measured in 2019 dollars? The CPI in December 2019 was 258.203 while the CPI in 1962 was 30.380.

c. How many hours would someone have to work in 1962 in order earn enough money to buy the coffeemaker in part b.? Refer to the 1962 hourly wage rate you calculated in part a.

d. Amazon.com sells a Mr. Coffee coffeemaker for $24.99 in 2019. How many hours would someone have to work in 2019 to buy that coffeemaker? Refer to the hourly wage rate for 2019 that you calculated in part a.