Question

Step 2. Convert nominal minimum wage (NMW) to real minimum wage

(RMW).
Minimum wage (NMW) from data source in 2009 = $_, the CPI
for 2009 =
Formula 1: RMW= NMW/CPI in hundredths
for 2009

Answer 1

To convert the nominal minimum wage (NMW) to the real minimum wage (RMW), divide the NMW by the CPI in hundredths for the specific year.

Step-by-step explanation:

How to Convert Nominal Minimum Wage to Real Minimum Wage

To convert the nominal minimum wage (NMW) to the real minimum wage (RMW), you need to use the formula: RMW = NMW / CPI in hundredths for the specific year.

For example, if the nominal minimum wage in 2009 is $10 and the CPI for 2009 is 200, then the real minimum wage would be $10 / 200 = $0.05 per hour.