Scenario 6-1
Grant Smith was a doctor. In 1944, he made $12 000. His daughter, Lisa Smith, is also a doctor. Last year she made $175 000. The price index in 1944 was 17.6 and the price index last year was 192.
-Refer to the Scenario 6-1.What is Lisa's income in 1944 dollars?

Question

Scenario 6-1
Grant Smith was a doctor. In 1944, he made $12 000. His daughter, Lisa Smith, is also a doctor. Last year she made $175 000. The price index in 1944 was 17.6 and the price index last year was 192.
-Refer to the Scenario 6-1.What is Lisa's income in 1944 dollars?

Quizplus · Accepted Answer

To find Lisa's income in 1944 dollars, adjust her income for inflation using the price indices: (175,000 / 192) * 17.6 = 16,042.

Scenario 6-1 Grant Smith Was a Doctor. in 1944, He Made $12 000