Question
7. Converting nominal income to real income . a. Suppose in year 1 your nominal income is $47,100 and CPI is 100. In year 2
7. Converting nominal income to real income.
a.Suppose in year 1 your nominal income is $47,100 and CPI is 100. In year 2 you were given a $700 raise and CPI increases to 102.5. Calculate your real income in year 2.
b.Are you better off or worse off in year 2? Explain(3 points)
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Managerial Economics
Authors: William F. Samuelson, Stephen G. Marks
8th edition
1118808940, 978-1119025900, 1119025907, 978-1119025924, 978-1118808948
