Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics An Intuitive Approach with Calculus

Authors: Thomas Nechyba

1st edition

538453257, 978-0538453257

Students also viewed these Economics questions