In 1954, Canadian Prime Minister Louis Stephen St. Laurent was paid a salary of $15 000. Stephen Harper, the Prime Minister in 2012, was paid $157 731. The price index for 1954 is 14.1 and the price index for 2012 is 121.7. What is, approximately, Prime Minister St. Laurent's salary equivalent in 2012 dollars?

Suppose in 2016, the cost of a market basket of goods was $1,951. In 2018, the cost of the same market basket of goods was $2,129. Calculate the price index for 2018, using the price index formula, assume 2016 is the base year. (Enter your response as an index number rounded to one decimal place.)

The following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 2014 to 2018. (All rates are rounded to the nearest tenth of a percent.)   Year      Nominal Interest Rate      Inflation Rate                  (Percent)                   (Percent) 2014           0.1                         1. 6 2015         0.2                            0.1  2016          0.5                          1.3 2017          1.1                         2.1 2018         2.1                           2.4       On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years.     According to the table, in which year did buyers of six-month Treasury…

Maddie's nominal income was $33,000 in 2012. In 2013, because of her excellent work ethic, she received a raise that increased her nominal income to $35,000. Maddie knew a lot about inflation so she decided to see how much of a raise she really received. After researching the consumer price index at the Bureau of Labor Statistics web site, she found that the CPI for 2012 was 110 and that it jumped to 125 in 2013. Calculate the percent change in Maddie's real income after she was given a raise. Was she hurt or helped by this unanticipated inflation? Explain.