Macroeconomics
13th Edition
ISBN: 9781337617444
Author: Roger A. Arnold
Publisher: Cengage
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Question
Chapter 6, Problem 4WNG
To determine
The equivalent salary.
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The CPI (using a 2000 base year) for 1965 is 26.0. Suppose a household's annual take-home pay in 1965 was $8,320.
What would be an equivalent take-home pay in 2000?
Suppose the nominal median household income for a family of four in the United States was $24,618.00 in 1985, $36,678.00 in 1995, $50,326.00 in 2005, and $53,276.00 in 2010.You will need to know that the CPI (multiplied by 100, 1982–1984 = 100) was 108.6 in 1985, 153.4 in 1995, 196.3 in 2005, and 219.1 in 2010.Instructions: Enter your responses rounded to two decimal places.
Year
Real Income
1985
$
1995
$
2005
$
2010
$
Between 1985 and 2005, the real median household income (Click to select) rose declined stayed constant .
Between 2005 and 2010, the real median household income (Click to select) .
Suppose the nominal median household income for a family of four in the United States was $24,618.00 in 1985, $36,678.00 in 1995, $50,326.00 in 2005, and $53,276.00 in 2010.You will need to know that the CPI (multiplied by 100, 1982–1984 = 100) was 108.6 in 1985, 153.4 in 1995, 196.3 in 2005, and 219.1 in 2010.Instructions: Enter your responses rounded to two decimal places.
Year
Real Income
1985
$
1995
$
2005
$
2010
$
Between 1985 and 2005, the real median household income (Click to select) rose declined stayed constant .
Between 2005 and 2010, the real median household income (Click to select) rose declined stayed constant .
rev: 01_31_2019_QC_CS-155719
Chapter 6 Solutions
Macroeconomics
Ch. 6.1 - Prob. 1STCh. 6.1 - Prob. 2STCh. 6.1 - In year 1, your annual income is 45,000 and the...Ch. 6.2 - Prob. 1STCh. 6.2 - Prob. 2STCh. 6 - Prob. 1QPCh. 6 - Prob. 2QPCh. 6 - Prob. 3QPCh. 6 - Prob. 4QPCh. 6 - Prob. 5QP
Ch. 6 - Prob. 6QPCh. 6 - Prob. 7QPCh. 6 - Prob. 8QPCh. 6 - Prob. 9QPCh. 6 - Prob. 10QPCh. 6 - Prob. 11QPCh. 6 - Prob. 12QPCh. 6 - Prob. 13QPCh. 6 - Prob. 14QPCh. 6 - Prob. 1WNGCh. 6 - Prob. 2WNGCh. 6 - Prob. 3WNGCh. 6 - Prob. 4WNGCh. 6 - Prob. 5WNGCh. 6 - Prob. 6WNGCh. 6 - Prob. 7WNGCh. 6 - Prob. 8WNGCh. 6 - Prob. 9WNGCh. 6 - Prob. 10WNG
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- The cost of a gallon of gasoline was $0.57 in 1975. If the cost of gasoline grew with inflation what would the cost be in 2021? How does this compare this to the actual cost of gasoline in 2021? Explain your answer using a meaningful sentence. CPI in 1975 was 53.8 CPI in 2021 was 270.97arrow_forwardThe basket of goods and services included in the Consumer Price Index cost $450 in the base year. If the same basket cost $700 ten years later, what was the CPI on that date?arrow_forwardSuppose Billy started working at a graphic design firm in 2014 at a nominal wage of $16 per hour. In that year, the CPI was 172. Billy was guaranteed a cost of living adjustment of $2 every two years. His nominal wage will increase $2/hour every two years. Fill in the table to show the change in his real wage. Round to two decimal places.arrow_forward
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