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Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year. a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income 1 $45, e00 100 b. At the end of Year 5. James's real income will be $

Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year. a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income 1 $45, e00 100 b. At the end of Year 5. James's real income will be $

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 7E
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Please help with the table and provide calcualtions thank you in advance 

Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year. a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income 1 $45, e00 100 24 2 4 b. At the end of Year 5. James's real income will be $
Transcribed Image Text:Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year. a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income 1 $45, e00 100 24 2 4 b. At the end of Year 5. James's real income will be $
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