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The price level was listed as 100 in 2010 and in 2020 was listed as 115. If a person's salary is $40,000 a year in 2020, what would be the value of their wages in 2010 dollars?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 12CQ

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The price level was listed as 100 in 2010 and
in 2020 was listed as 115. If a person's salary
is $40,000 a year in 2020, what would be the
value of their wages in 2010 dollars?

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