Income in year 1: $50,000 income in year 2: $52,000 CPI in year 1 = 100 CPI in year 2 = 110 what happen happened to nominal income between year 1 and year 2? What is the real income in year 1 and year 2? what is the inflation rate ?

Income in year 1: $50,000 income in year 2: $52,000 CPI in year 1 = 100 CPI in year 2 = 110 what happen happened to nominal income between year 1 and year 2? What is the real income in year 1 and year 2? what is the inflation rate ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Income in year 1: $50,000

income in year 2: $52,000

CPI in year 1 = 100

CPI in year 2 = 110

what happen happened to nominal income between year 1 and year 2?

What is the real income in year 1 and year 2?

what is the inflation rate ?

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