Suppose that your income during Year X was $50,000, and the CPI for Year X was 150 (base year = Z=100). Back in Year Z your income was $30,000. Has your real income (in year z dollars) increased or decreased from Z to year X? By how much?

A. Increased by $5,000.
B. Increased by $3,333.
C. Decreased by $5,000.
D. Decreased by $3,333.


Answer: B

Economics

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