At the time of Kelsey's 20 year high school reunion she was earning $50,000 and the CPI was 120. Now that it is time for her to attend her 30 year high school reunion, Kelsey's income has risen to $97,000 and the CPI is 230. At her 30 year reunion, can Kelsey rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?
A) Yes, Kelsey's real income rose during that 10 year period.
B) No, Kelsey's real income fell during that 10 year period.
C) No, Kelsey's real income remained constant during that 10 year period.
D) It is impossible to determine what happened to Kelsey's real income.
A
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If firms sell exactly what they expected to sell, all of the following will be true except
A) aggregate expenditure will be greater than GDP. B) there is no unplanned change in inventories. C) aggregate expenditure will be equal to GDP. D) inventories will not change, and GDP and employment will remain stable.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
The marginal social benefit of air quality
a. declines as air quality increases b. rises as air quality increases c. remains constant as air quality increases d. first falls then rises as air quality increases e. is always negative
In 2009, the United States had its largest peacetime deficit. How much did the federal government spend over its revenue in that year?
a. $582 trillion b. $1.4 billion c. $1.4 trillion d. $582 billion