Suppose the consumer price index (CPI) in 1983 was 100. In 1994, the CPI was 150. In 1994, a bank teller's annual salary was $22,000. The same job paid $16,000 in 1983. After adjusting for inflation, the real salary of bank tellers a. Increased by more than the rate of inflation b. Decreased between 1983 and 1994 c. Remained the same between 1983 and 1994 d. Increased between 1983 and 1994 e. The inflation rate was around 33.3% between 1983 and 1994.
Suppose the consumer price index (CPI) in 1983 was 100. In 1994, the CPI was 150. In 1994, a bank teller's annual salary was $22,000. The same job paid $16,000 in 1983. After adjusting for inflation, the real salary of bank tellers a. Increased by more than the rate of inflation b. Decreased between 1983 and 1994 c. Remained the same between 1983 and 1994 d. Increased between 1983 and 1994 e. The inflation rate was around 33.3% between 1983 and 1994.
Chapter17: Inflation
Section: Chapter Questions
Problem 5SQ
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Question
Suppose the
a.
Increased by more than the rate of inflation
b.
Decreased between 1983 and 1994
c.
Remained the same between 1983 and 1994
d.
Increased between 1983 and 1994
e.
The inflation rate was around 33.3% between 1983 and 1994.
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