Sheila earned $65,000 in 2010, and her salary went up to $75,000 in 2020. If the CPI rose from 218 to 260 between 2010 and 2020, which of the following is true? A.Sheila's salary in 2010 is not equivalent to her salary in 2020 because she can buy more goods and services in 2020. B.The purchasing power of Sheila's salary increased between 2010 and 2020. C.The purchasing power of Sheila's salary decreased between 2010 and 2020. D.The purchasing power of Sheila's salary remained constant between 2010 and 2020. E.There was deflation between 2010 and 2020.

Given : Salary - 2010=$65000,2020=$75000 CPI-2010=218,2020=260

Answered: 0 bec | bartleby

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

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Sheila earned $65,000 in 2010, and her salary went up to $75,000 in 2020. If the CPI rose from 218 to 260 between 2010 and 2020, which of the following is true?

	A.	Sheila's salary in 2010 is not equivalent to her salary in 2020 because she can buy more goods and services in 2020.
	B.	The purchasing power of Sheila's salary increased between 2010 and 2020.
	C.	The purchasing power of Sheila's salary decreased between 2010 and 2020.
	D.	The purchasing power of Sheila's salary remained constant between 2010 and 2020.
	E.	There was deflation between 2010 and 2020.

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