Suppose in the year 2000 Ken earned $60,000 per year. If the CPI in the year 2000 was 172.2 and in 2015 was 236.7, what is the minimum level of income Ken would have needed to earn in 2015 to have maintained the same standard of living he had in 2000?
a. $80,479
b. $81,237
c. $82,474
d. $83,623
c
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The property of diminishing marginal rate of substitution follows from the property that the indifference curves are
A) downward sloping. B) upward sloping. C) bowed in toward the origin. D) bowed out from the origin.
The role of unions is:
A. unnecessary if the market does a good job of determining fair wages. B. to provide firms with a mechanism to more efficiently fire less productive workers. C. gaining power in the United States. D. All of these statements are true.
Even though the monetary policy is very quick recognize and respond to the coming of a recession than fiscal policy, it has proven in the 2000's to be less affective in avoiding or bring the economy out of the recession because
A. Increased investment by the private sector has not been forthcoming in response to the reduction in interest rates. B. Consumers have tended to increase saving and decrease consumption. C. Our economy has increased imports during recessions. D. The government has imposed fiscal policy to counteract the monetary policy.
If corn products are found to cause cancer, then the most immediate effect will be that the
A. Supply curve for corn will shift left. B. Supply curve for corn will shift right. C. Demand curve for corn will shift left. D. None of the choices are correct.