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Economics for Decision Making - Question 1 a) Average wage rate in the year 1975=$6.50 Average wage rate in the year 2002=$17 Consumer Price Index in 1975=42 Consumer Price Index in 2002=100 because it is the base year as per the question. i) The rate of inflation between 1975 and 2002= (Consumer Price Index 2002- Consumer Price Index 1975)/ Consumer Price Index in 1975 = (100-42)/42 =138.10% ii) Average hourly wage from t…
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