Question
9. Jessica told her cousin that her first job pays her $40,000 per year. It was a lot more than her cousin's starting salary at
9. Jessica told her cousin that her first job pays her $40,000 per year. It was a lot more than her cousin's starting salary at $32,000 per year at the same job years ago. If the CPI was 160 when her cousin got the job and CPI increased to 180 when Jessica got the job, so Jessica is ____?
A. Correct. Adjusting for quantity changes, her salary is more than her cousin's salary.
B. Wrong. Adjusting for quantity changes, her salary is less than her cousin's salary.
C. Correct. Adjusting for price changes, her salary is higher than her cousin's.
D. Wrong. Adjusting for price changes, her salary is lower than her cousin's.
E. Maybe wrong or maybe right. We need more price information.
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