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The table shown displays yearly salaries and the CPI across five decades. Year Salary ($) CPI 1979 43,265 72.6 1989 85,529 124.0 1999 135,250 166.6 2009 170,844 214.5 2019 201,450 255.2 How can we compare the real value of the 1979 salary to the salary earned in 2019?

The table shown displays yearly salaries and the CPI across five decades. Year Salary ($) CPI 1979 43,265 72.6 1989 85,529 124.0 1999 135,250 166.6 2009 170,844 214.5 2019 201,450 255.2 How can we compare the real value of the 1979 salary to the salary earned in 2019?

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment
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The table shown displays yearly salaries and the CPI across five decades. Year Salary ($) CPI 1979 43,265 72.6 1989 85,529 124.0 1999 135, 250 166.6 2009 170,844 214.5 2019 201,450 255.2 How can we compare the real value of the 1979 salary to the salary earned in 2019? Multiple Choice There is no real way to compare the two salaries without more information. Both salaries must be put into real dollars in the same year for comparison. The 1979 salary must be subtracted from the 2019 salary as shown in the table. The 2019 salary must be put into real 2019 terms to compare it to the 1979 salary.
Transcribed Image Text:The table shown displays yearly salaries and the CPI across five decades. Year Salary ($) CPI 1979 43,265 72.6 1989 85,529 124.0 1999 135, 250 166.6 2009 170,844 214.5 2019 201,450 255.2 How can we compare the real value of the 1979 salary to the salary earned in 2019? Multiple Choice There is no real way to compare the two salaries without more information. Both salaries must be put into real dollars in the same year for comparison. The 1979 salary must be subtracted from the 2019 salary as shown in the table. The 2019 salary must be put into real 2019 terms to compare it to the 1979 salary.
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