Index Numbers Problem Nominal 2000 = 100 2005 = 100 Real Purchasing Current $ Price Price Constant $ Power Year Earnings Index Index Earnings of $1 2003 1,096 131.7 2004 1,194 139.3 2005 1,314 149.1 2006 $ 1,474 162.5 2007 $ 1,650 179.0 Growth Rate in Real Earnings (2005 = 100) between 2003 and 2007? 2000=100 Spliced Year Index #1 Index #1 Index #2 Factor Index 1998 100 1999 116.2 2000 124.5 2001 142.7 174.3 2002 192.4 X 2003 205.7 X 2004 239.2 X