Related to the Economics in Practice on p.451: The Consumer Price Index in the United States was 215.3 in 2008 and 214.5 in 2009.If a retiree received a monthly pension check of $3,200.00 in 2008 and his pension is tied to the CPI,how much would his monthly pension check be in 2009?

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The CPI decreased from 215.3 to 214.5, a decrease of 0.37%. Therefore, the retiree's pension should decrease by the same percentage, which is $3,200.00 x 0.0037 = $11.89. Thus, the retiree's monthly pension check in 2009 would be $3,200.00 - $11.89 = $3,188.11.

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