- Download the worksheet to save time writing
- Start solving the practice problems
- If you're stuck, watch the video solutions
- See your summary to get more insights
A person earned \$45,000 in 2019 with a CPI of 1.05 and \$50,000 in 2021 with a CPI of 1.25. Synthesize this information to determine in which year they had greater purchasing power.
A person earned \$65,000 in 2016 with a CPI of 1.05 and \$75,000 in 2021 with a CPI of 1.35. Synthesize this information to determine in which year they had greater purchasing power.
Calculate the real income if the nominal income is \$100,000 and the CPI is 1.25.
How does the CPI help in understanding real income?
What is the impact of inflation on nominal income?
A teacher's salary increased from \$50,000 to \$55,000, while the CPI rose from 1.00 to 1.15. How did the change in price level affect their real income?
What is nominal 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?
A person earned \$80,000 in 2015 with a CPI of 1.10 and \$90,000 in 2020 with a CPI of 1.30. Synthesize this information to determine in which year they had greater purchasing power.
What happens to real income if both nominal income and the price index increase by 10%?