Answered: In year 1 the CPI is 181, and in year 2…

In year 1 the CPI is 181, and in year 2 the CPI is 195. If Dennis's salary was $95,000 in year 1, what is the minimum salary he must earn in year 2 to "keep up with inflation"?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In year 1 the CPI is 181, and in year 2 the CPI is 195.
If Dennis's salary was $95,000 in year 1, what is the
minimum salary he must earn in year 2 to "keep up
with inflation"?

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