Question: The following table gives the monthly average salary of a teacher and general price indices for a period of six years.
Year: 1980 1981 1982 1983 1984 1985
Income (Rs.): 360 420 500 550 600 640
General Price Index: 100 104 115 160 280 290
Find real average salary and construct real wage index based on 1980.
Solution: Computation of Real Income and Real Income Indices
| Year | Income (Rs.) | Price Index | Real Income | Real Income Index |
| 1980 | 360 | 100 | (360×100)/100 = 360.00 | 100 |
| 1981 | 420 | 104 | (420×104)/100 = 403.80 | 112.2 |
| 1982 | 500 | 115 | (500×115)/160 = 434.80 | 120.8 |
| 1983 | 550 | 160 | (420×100)/160 = 343.80 | 95.5 |
| 1984 | 600 | 280 | (420×100)/280 = 214.30 | 59.5 |
| 1985 | 640 | 290 | (420×100)/290 = 220.70 | 61.3 |