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In Year 3, a Hamburger Cost Twice as Much as in Year

Question 22

Essay

In Year 3, a hamburger cost twice as much as in Year 1 but you had twice as much income to pay for it. In effect, the price was actually the same. In Year 4, however, your income increased 250 percent while the price of the hamburger increased by 275 percent. How can this be explained?

Correct Answer:

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You got hit by infla...

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