a-nurses-salary-increased-from-70000-to-77000-while-the-cpi-rose-from-100-to-115

Question

A nurse's salary increased from $$70,000 to 77$$,000, while the CPI rose from 1.00 to 1.15. How did the change in price level affect their real income?

Accepted Answer

The increase in price level offset the salary increase, reducing real income.

Answer

The increase in price level enhanced the salary increase, increasing real income.

Answer

The increase in price level doubled the real income.

Answer

The increase in price level had no effect on real income.

A nurse's salary increased from \$70,000 to \$77,000, while the CPI rose from 1.00 to 1.15. How did the change in price level affect their real income?