00:01
To determine in which year the real wage rate was high, we need to calculate the real wage rate for both 1934 and 2018 and compare them.
00:10
The real wage rate is calculated as the nominal wage rate divided by the consumer price index, which is bpi for the year.
00:21
So real wage rate would be normal.
00:35
Nominal wage rate divided by bpi multiplied with 100.
00:42
So for 1934, it would be $0 .55 divided by bpi, which is 15 .4 multiplied 100.
01:01
That amounts to 4 .1 or 4 .10.
01:07
And for 2018, it would be $0 .62.
01:17
For 2018, it would be $0 .62.
01:25
For 2018, it would be $0 .62.
01:25
For 2018, it would be $0 .62.
01:26
Now we compare the real wage rate.
01:30
So here 2018 is higher...