||8. Changes in Wages and Consumer Prices. The following table shows for 1980 and 2004 the cost of a standard basket of consumer goods (a standard bundle of food, housing, and other goods and services) and the nominal average wage (hourly earnings) for workers in several sectors of the economy. a. Complete the table by computing the percentage changes of the cost of the basket of consumer goods and the nominal wages. b. How do the percentage changes in nominal wages compare to the percentage change in the cost of consumer goods? c. Which sectors experienced an increase in real wages, and which sectors experienced a decrease in real wages? 9. Repaying a Car Loan. Suppose you borrow money to buy a car and must repay $20,000 in interest and principal in five years. Your current monthly salary is $4,000. a. Complete the following table. b. Which environment has the lowest real cost of repaying the loan? 10. Inflation and Interest Rates. Len buys MP3 music at $1 per tune, and prefers music now to music later. He is willing to sacrifice 10 tunes today as long as he gets at least 11 tunes in a year. When Len loans $50 to Barb for a one-year period, he cuts back his music purchases by 50 tunes. a. To make Len indifferent about making the loan, Barb must repay him_______ tunes or $ ____. The implied interest rate is ______ percent. b. Suppose that over the one-year period of the loan, all prices (including the price of MP3 tunes) increase by 20 percent, and Len and Barb anticipate the price changes. To make Len indifferent about making the loan, Barb must repay him _________ tunes or $ ______. The implied interest rate is ______percent.