Wilpro
10-28-2007, 08:33 PM
The data presented below refers to a unit of production of wheat. Assume the only input used in this process of production is labour. Assume then that the only cost of production is wages. In addition, assume this unit of production has sold a constant quantity of wheat since 2000 to the present:
Year - Index of total wages(Nominal)- Consumers’ Price index - Index of real wages
2000 100 100 100
2001 105 103 102
2002 107 109 98
2003 110 112 98
2004 112 115 97
2005 112 118 95
2006 113 121 93
With the data available, calculate an index that informs the producer in which years to increase production of wheat and identify them.
Year - Index of total wages(Nominal)- Consumers’ Price index - Index of real wages
2000 100 100 100
2001 105 103 102
2002 107 109 98
2003 110 112 98
2004 112 115 97
2005 112 118 95
2006 113 121 93
With the data available, calculate an index that informs the producer in which years to increase production of wheat and identify them.