The consumer price index (CPI), with a base of 1982-84, increased from 219.40 in 2010 to 257.00 in 2019. The corresponding increase in the producer price index (PPI) was from 177.80 in 2010 to 189.20 in 2019. a. Use the appropriate price index to compute John's percentage change in real income if his (nominal) income increased from $53,000 in 2010 to $69,000 in 2019. (Round your answer to 2 decimal places.) b. Use the appropriate index to compute the percentage change in real revenue of John's company if the nominal increase was from $14.2 million in 2010 to $15.8 million in 2019. (Round your answer to 2 decimal places.)
The consumer price index (CPI), with a base of 1982-84, increased from 219.40 in 2010 to 257.00 in 2019. The corresponding increase in the producer price index (PPI) was from 177.80 in 2010 to 189.20 in 2019. a. Use the appropriate price index to compute John's percentage change in real income if his (nominal) income increased from $53,000 in 2010 to $69,000 in 2019. (Round your answer to 2 decimal places.) b. Use the appropriate index to compute the percentage change in real revenue of John's company if the nominal increase was from $14.2 million in 2010 to $15.8 million in 2019. (Round your answer to 2 decimal places.)
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 18P
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Transcribed Image Text:The consumer price index (CPI), with a base of 1982-84, increased from 219.40 in 2010 to 257.00 in 2019. The
corresponding increase in the producer price index (PPI) was from 177.80 in 2010 to 189.20 in 2019.
a. Use the appropriate price index to compute John's percentage change in real income if his (nominal) income increased
from $53,000 in 2010 to $69,000 in 2019. (Round your answer to 2 decimal places.)
b. Use the appropriate index to compute the percentage change in real revenue of John's company if the nominal
increase was from $14.2 million in 2010 to $15.8 million in 2019. (Round your answer to 2 decimal places.)
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