Suppose the consumer price index (CPI) accurately measures inflation, and: Suppose in 1961 your grandfather earned $12,000, and the CPI in 1961 was 30. In 2020, the CPI was 260. Ceteris paribus, it follows that your grandfather's salary 2020 dollars equals: $1,385 O b. $31,200 O c. $104,000 O d. $312,000
Suppose the consumer price index (CPI) accurately measures inflation, and: Suppose in 1961 your grandfather earned $12,000, and the CPI in 1961 was 30. In 2020, the CPI was 260. Ceteris paribus, it follows that your grandfather's salary 2020 dollars equals: $1,385 O b. $31,200 O c. $104,000 O d. $312,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose the consumer price index (CPI) accurately measures inflation, and: Suppose in 1961 your grandfather earned
$12,000, and the CPI in 1961 was 30. In 2020, the CPI was 260. Ceteris paribus, it follows that your grandfather's salary in
2020 dollars equals:
O a. $1,385
O b. $31,200
O c. $104,000
O d. $312,000
Next page](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07eb8943-5563-4431-8a85-840a3c5d94ee%2F69ded7dd-2ffe-4e1b-be60-693e3d03877c%2Ffbfwf43_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose the consumer price index (CPI) accurately measures inflation, and: Suppose in 1961 your grandfather earned
$12,000, and the CPI in 1961 was 30. In 2020, the CPI was 260. Ceteris paribus, it follows that your grandfather's salary in
2020 dollars equals:
O a. $1,385
O b. $31,200
O c. $104,000
O d. $312,000
Next page
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