Using data from the St. Louis Federal Reserve
(FRED) (http://research.stlouisfed.
org/fred2/), analyze CPI (the consumer price index)
and wages.
a. Find the most recent values and the values
from one year earlier from FRED for
the Consumer Price Index for All Urban
Consumers: All Items (CPIAUCNS) and
Average Hourly Earnings of Production and
Nonsupervisory Employees: Total Private
(AHETPI).
b. Using the CPI data and nominal wage data
(AHETPI) from above, compute the average
hourly real wage for each year.
c. Over the one-year interval under examination,
calculate the percentage change in the average
hourly nominal wage and the average hourly
real wage.