Scenario 6-1
Grant Smith was a doctor in 1944 and made about $12 000 a year. His daughter Lisa Smith also is a doctor and she made about $175 000 in 2006. The price index in 1944 was 17.6 and the price index was 192 in 2006.
-Refer to Scenario 6-1. What is Lisa's income in 1944 dollars?

Question

Quizplus · Accepted Answer

To convert Lisa's 2006 income to 1944 dollars, use the formula: (2006 income) * (1944 price index / 2006 price index). This gives $175,000 * (17.6 / 192) = $16,042.

Scenario 6-1 Grant Smith Was a Doctor in 1944 and Made About