Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year. a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income 1 $45, e00 100 b. At the end of Year 5. James's real income will be $

The nominal income in first year = $45,000 The income increased every year by = 7% = 0.07 The…

Answered: Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN: 9780190931919

Author: NEWNAN

Publisher: Oxford University Press

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Question

Please help with the table and provide calcualtions thank you in advance

Suppose that James's income in Year 1 was $45,000. Over the next four years his income increases by 7% per year. At the same time,
the economy experiences an inflation rate of 5% per year.
a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal
income and Real income. Enter your final responses for the price index rounded to one decimal place.
Year
Nominal income
Price index
Real income
1
$45, e00
100
24
2
4
b. At the end of Year 5. James's real income will be $

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