M 4 & W E R PART II. PROBLEM: NOMINAL vs REAL (20 Marks) The table below show the nominal minimum wage in BC for selected years and the corresponding consumer price index (CPI) for those years. Year Nominal Minimum Consumer Price Year Nominal Minimum Wage (5 per hour) Consumer Price Index (2014=100) Wage ($ per hour) Index (2014-100) 1976 3.00 26.2 2002 8.00 84.1 1987 4.00 57.8 2011 98.0 8.75 1990 5.00 65.9 2014 100.0 10.25 1993 6.00 73.8 2015 101.1 10.45 1995 6.50 77.0 2017 105.1 10.85 1998 78.6 12.65 7.15 2018 108.0 2000 7.60 80.8 2019 110.6 13.85 1. Based on constant 2014 dollars, calculate the minimum wage for all the years. (Round your answer to the nearest 5 cents.) 2. Interpret the meaning of the real minimum wage rates derived in (1) for 1976 and 2019. 3. Plot both the nominal and real minimum wage rates for all the years on the same graph. (Graph paper a must.) 4. To have the same purchasing power in 2019 as in 1976, what should the nominal minimum wage be for 2019? (Show your work in all cases.) Real way Nominal wage vlor CA