Suppose youll have an annual nominal income of $30,000 for each of the next three years, and

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Suppose you’ll have an annual nominal income of $30,000 for each of the next three years, and the inflation rate is 5 percent per year.

(a) Find the real value of your $30,000 salary for each of the next three years.
(b) If you have a COLA in your contract, and the inflation rate is 5 percent, what is the real value of your salary for each year?

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: Oct 30, 2023 09:41 AM

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Suppose youll have an annual nominal income of $30,000 for each of the next three years, and

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To find the real value of your salary for each of the next three years you need to adjust your nomin...View the full answer

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