In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the real income in 2009?
A) $58,265
B) $58,072
C) $58,000
D) $58,999

Question

Quizplus · Accepted Answer

The real income in 2009 was $58,265. This is calculated by dividing the nominal income in 2009 ($125,000) by the CPI in 2009 (214.537) and multiplying by the CPI base (100).

In 2000, an Executive Earned $100,000