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Godty Godty
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2 weeks ago
Using Price Indexes to Correct for Inflation

Suppose your grandmother earned a salary of $21,000 in 1975. If the CPI was 53 in 1975 and is 264 today, then the value of your grandmother's salary in today's dollars is approximately ________. (Round to the nearest dollar.)

▸ $4,431,000

▸ $4216

▸ $104,604

▸ $11,130
Textbook 

Macroeconomics


Edition: 3rd
Authors:
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marcospolosmarcospolos
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2 weeks ago
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$104,604

The answer is calculated as: salary in 1975 x (CPI for this year/ CPI in 1975).
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Godty Author
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2 weeks ago
This calls for a celebration Person Raising Both Hands in Celebration
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Good timing, thanks!
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2 hours ago
Brilliant
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