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
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning