Table 20-23 -Refer to Table 20-23

Essay

Table 20-23
$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Nominal } \\\text { Minimum } \\\text { Wage }\end{array} & \begin{array} { c } \text { CPI } \\( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } )\end{array} \\\hline 1974 & \$ 2.00 & 49.3 \\\hline 2012 & 7.25 & 224.9 \\\hline\end{array}$$
-Refer to Table 20-23.The table above lists the actual minimum wage and CPI in 1974 and in 2012.Using the above table,calculate the real minimum wage for 1974 and 2012.Calculate the rate of growth of the real minimum wage from 1974 to 2012.Are workers better off in terms of the purchasing power of a dollar in 1974 or 2012? Explain why.