You earned $30,000 in 2007, and your salary rose to $80,000 in 2016. If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true?
A) The purchasing power of your salary increased between 2007 and 2016.
B) There was deflation between 2007 and 2016.
C) The purchasing power of your salary fell between 2007 and 2016.
D) The purchasing power of your salary remained constant between 2007 and 2016.
A
Economics
You might also like to view...
A monopolistic competitive firm:
a. will always earn monopoly profits. b. will never earn monopoly profits. c. may earn monopoly profits in the short run. d. may earn monopoly profits in the long run.
Economics
If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real wage will:
A. be unaffected. B. rise by 4 percent. C. fall by 4 percent. D. rise by 8 percent.
Economics