Index Numbers Problem Nominal 2000 100 2005 = 100 Current $ Price Year Earnings Index Price Index Real Constant $ Earnings Purchasing Power 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 Year Index #1 Index #1 Index #2 1998 100 1999 116.2 2000 124.5 2001 142.7 2002 2003 2004 174.3 192.4 X 205.7 239.2 Spliced Factor Index