1. If the Consumer Price Index rose from 120 to 138 during a 12 month period. What was the rate of inflation during this time? 2. This year Anjun's monthly pay rose from $1000 (last year's rate) to $1100 (this year's rate). During the year the inflation rate for consumer products was 12%. A. What happened to Anjun's nominal income? (up or down, and by what percent?) Up by 9.09% B. What happened to Anjun's real income? (up or down and by what percent?)

1. If the Consumer Price Index rose from 120 to 138 during a 12 month period. What was the rate of inflation during this time? 2. This year Anjun's monthly pay rose from $1000 (last year's rate) to $1100 (this year's rate). During the year the inflation rate for consumer products was 12%. A. What happened to Anjun's nominal income? (up or down, and by what percent?) Up by 9.09% B. What happened to Anjun's real income? (up or down and by what percent?)

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQ

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