Final answer:
The percentage change in nominal earnings between 2006 and 2008 is calculated by using the formula that takes the difference in income divided by the average of the two incomes, multiplied by 100. After substituting the values and calculations, the percentage change in income is found to be 41.3% when rounded to one decimal place.
Step-by-step explanation:
To calculate the percentage change in nominal earnings between 2006 and 2008, we apply the formula for percentage change which is:
Percentage change in income = [(change in income) / (original income)] × 100.
First, we find the change in income from 2006 to 2008:
Change in income = New Income - Original Income = 38,000 - 25,000 = 13,000.
Next, we calculate the average of the two incomes for the base value:
Original income (base) = (New Income + Original Income) / 2 = (38,000 + 25,000) / 2 = 31,500.
Now, we plug these values into our formula:
Percentage change in income = (13,000 / 31,500) × 100 = 0.4127 × 100.
Finally, we multiply by 100 to get a percentage and round to one decimal place:
Percentage change in income = 41.3 (rounded from 41.27).