The first federal minimum wage was established in 1938 at $0.25 per hour. Since then, the hourly federal minimum wage has been periodically increased as shown in the graph below.        Calculate the average growth rate of the hourly federal minimum wage from $0.25 in 1938 to $7.25 in 2020. Round to three decimal places. Write a sentence that interprets this result in context.

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The first federal minimum wage was established in 1938 at $0.25 per hour. Since then, the hourly federal minimum wage has been periodically increased as shown in the graph below.

 
   


 Calculate the average growth rate of the hourly federal minimum wage from $0.25 in 1938 to $7.25 in 2020. Round to three decimal places. Write a sentence that interprets this result in context.

Unadjusted Federal Minimum Wage, 1938-2020
8.00
6.00
4.00
2.00
0.00
1930
1940
1950
1960
1970
1980
1990
2000
2010
2020
Year
Hourly Wage in Dollars
Transcribed Image Text:Unadjusted Federal Minimum Wage, 1938-2020 8.00 6.00 4.00 2.00 0.00 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Year Hourly Wage in Dollars
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The unadjusted federal minimum wage has been a constant value of $7.25 since 2009. What trend do you observe in the adjusted federal minimum wage from 2009 to 2020. explain why this trend occurs.

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