The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2003?
A) $34,046.69
B) $34,500.00
C) $59,880.00
D) $41,200.00

Question

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are:  What was Jon's real income in 2003?
A) $34,046.69 
B) $34,500.00 
C) $59,880.00 
D) $41,200.00

Quizplus · Accepted Answer

To calculate Jon's real income in 2003, we need to divide his nominal income by the CPI. From the table, we see that the CPI for 2003 is 182.6. Thus, Jon's real income in 2003 is $62,300/182.6 = $34,046.69, which corresponds to answer choice A.

The Take-Home Pay of Jon Greene and the CPI for 2003