In 1943, Maria earned $2,000 working as a weaver in Chimayo, New Mexico, renowned for its tradition of handwoven textiles. Today, her granddaughter, Gabriela, also works as a weaver in Chimayo and earns $45,000 per year. Suppose the price index for traditional New Mexican crafts was 12.5 in 1943 and 215 in the current year. In real terms, adjusted for inflation, approximately what percentage of Maria's income does Gabriela's income represent?

In 1943, Maria earned $2,000 working as a weaver in Chimayo, New Mexico, renowned for its tradition of handwoven textiles. Today, her granddaughter, Gabriela, also works as a weaver in Chimayo and earns $45,000 per year. Suppose the price index for traditional New Mexican crafts was 12.5 in 1943 and 215 in the current year. In real terms, adjusted for inflation, approximately what percentage of Maria's income does Gabriela's income represent?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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